Lambeth Council Considers Selling Garages, Land for Housing

Lambeth Council is considering selling off garages and other land holdings to help fund investment in its existing housing stock, as revealed at a recent Overview and Scrutiny Committee meeting.

The move comes as the council faces significant financial challenges, including a £1 billion shortfall in its Housing Revenue Account (HRA) over the next 30 years, largely due to government policies on rent reductions and caps. Councillor Danny Adilypour, Deputy Leader for Housing Investment Homes, stated that previous government decisions around rent reductions and the rent cap have lost our HRA £1 billion over the next 30 years . He added that the disposals are a business-as-usual approach to active asset management and not a panic measure.

The council aims to generate an estimated £13.7 million from an initial tranche of disposals, which will be used to finance capital programmes or reduce borrowing levels within the HRA, according to Glenn Hammond, Interim Director of Finance. The meeting information does not provide a specific timeline for the initial tranche of disposals. However, it does state that ward councillors will receive briefings on specific sites, and residents will be consulted through the usual key decision process. The council insists that any properties considered for disposal will first be assessed for their suitability as temporary accommodation (TA). According to Fiona Connolly, Corporate Director for Adult Social Care and Housing, every property considered for disposal is first evaluated for use as TA. Councillor Danny Adilypour stated that properties are only put forward for disposal if they are deemed unviable for TA, considering the financial savings compared to the capital receipts generated from disposal. The criteria for assessing suitability for TA are the same three performance areas used for social rent properties: meeting residents' needs, return on investment, and management requirements.

However, concerns were raised about the potential impact on local communities. The committee heard that local residents and community groups should be consulted and given the opportunity to buy the land or property being disposed of for community benefits. Fiona Connolly clarified that consultation would primarily be with secure tenants affected by a disposal, not borough-wide. However, she also stated that the council is understanding who the users are of a garage site or car park, how that amenity connects, and whether it is adjacent to or connected to an estate. She stated that they will be consulting and each consultation for each asset will be taken separately and individually.

Catherine, Director of Housing Strategy and Delivery, explained that an industry-standard residual appraisal is used to determine land value, assessing development potential and comparing it to the value of developing homes for social rent or temporary accommodation. Matt Dibbin, Director of Regeneration and Property, added that commercial agents are appointed to secure the best value through the market, using methods such as public auction, tender, or private treaty. He stated that under Section 123 of the Local Government Act, the council has to make sure it gets the best consideration for every single asset that it takes to market.

Fiona Connolly, Corporate Director for Adult Social Care and Housing, clarified that consultation would primarily be with secure tenants affected by a disposal, not borough-wide. Councillor Griffiths expressed concern that residents were not aware of the proposed asset disposals and that they needed to be given a choice. She also asked what garages would be sold as, and whether they would be sold with planning permission.

The Overview and Scrutiny Committee made several recommendations to ensure transparency and community involvement, including:

• Ensuring the council secures the best possible price for the disposal of identified assets.
• Consulting local residents and community groups and giving them the opportunity to buy the land or property for community benefits.
• Providing the committee with more details on service panels and how they operate.
• Ensuring the disposal process is well communicated, transparent, and open to public scrutiny.
• Updating the committee on any future tranches of asset disposals and the case for those disposals.

The council maintains that it is committed to responsible asset management and will ensure that disposals are conducted in a transparent and open manner. The Housing Asset Management Framework 2025-2030 and the Disposal of Housing Revenue Account HRA Assets Policy and Process will guide future decisions on asset management.