Council launches legal action against housing estate board over governance and management

This follows a failure by the board to provide a full response to failings raised by the council in March.

According to the BBC, occupants of the Loughborough Estate near Brixton said they had been dealing with severe health and safety risks, including sewage leaks, damp, mould and flooding in their homes for years.

They claimed the problems were the result of years of financial mismanagement by LEMB, and said there had been limited support from the council.

On 13 March, the council wrote to Loughborough Estate Management Board (LEMB) insisting that immediate action be taken within 14 days to address serious issues with the running of the estate.

The actions included:

• Re-running a continuation ballot which complies with the terms of the management agreement. "This will give all residents the opportunity to have a say on the effectiveness of the LEMB's management of the estate and whether they want LEMB to continue managing the estate or whether management should return to Lambeth Council."
• Sharing a Periodic Review with residents. "Before the ballot takes place, all tenants and leaseholders must receive a copy of the full audit so they can make an informed decision when voting. The Periodic Review identified multiple and serious failings in LEMB’s management and governance."
• Allowing all eligible residents who apply to LEMB to become shareholders which provides them with rights to vote at general meetings.

The council has also subsequently claimed that an online annual general meeting in February 2026 was not valid. "The council has learned that attendance was below the number of shareholders required under LEMB’s own rules and no formal resolutions were put to shareholders despite being listed on the agenda."

LEMB’s legal representative requested a 14-day extension to the original 27 March deadline, but this was rejected.

The housing estate board were given a final seven-day extension, until 7 April, to respond in full and confirm that the necessary actions demanded by Lambeth would be forthcoming.

After the board failed to provide a full response by 7 April, the council announced it had “no choice” but to prepare legal papers for filing in the High Court.

A council spokesperson said: “We have been patient and reasonable in seeking a response from LEMB, including granting an extension to the original deadline of 27 March. The matters raised, in many cases, span several months of requests from the council that have simply gone unanswered or have been unsatisfactorily responded to.

“The response received does not provide sufficient assurance that robust measures are in place to address the serious issues identified. As a result, we have taken the decision to apply to the High Court to compel compliance with the management agreement and to protect residents’ ability to have their rightful say on the future management of their estate.

“Lambeth Council cannot comment further during legal proceedings but can assure residents of Loughborough Estate that there will be no disruption to day-to-day services on their estate which will continue to be managed by LEMB for the time being.”

Loughborough Estate Management Board has been approached for comment.

Lottie Winson