London borough facing judicial review claim in dispute over letting of properties on private market and threat of eviction
The London Borough of Lambeth is facing a judicial review challenge from a private resident of a housing estate who is threatened with eviction amid claims the council breached the Localism Act 2011 and the Housing Act 1985.
The claimant was granted an assured tenancy by Homes for Lambeth Living (HfL Living), a private company controlled by the local authority as sole shareholder, in 2019.
However, they argue that the council, and not HfL Living, is their landlord.
They allege that Lambeth broke the 2011 Localism Act by using HfL Living to rent homes in the private rented sector and grant assured shorthold tenancies that local authorities cannot legally issue.
The Public Interest Law Centre, which is acting for the claimant, said: “The council has used the general power and Section 4 of the Localism Act 2011 to create a company acting with a commercial purpose – HfL.
“However, the Localism Act explicitly prevents a local authority using these powers to do something they are already prohibited from doing in statute: including renting under a assured shorthold tenancy.
“Further, section 4(4) of the Localism Act 2011 prevents a local authority creating profit where they have existing statutory duties, which they do in respect of housing. Therefore, the decision to rent the claimant’s home in the private rented sector through HfL Living and granting assured shorthold tenancies is unlawful.”
PILC claimed that this also invalidated the council’s decision of 15 October 2024 to pursue vacant possession of these homes under section 21 of the Housing Act 1988.
“This is because the use of section 21 is only permissible for properties occupied by assured shorthold tenants, not secure tenants,” it said.
The claimant will also argue that Lambeth breached the Housing Act 1985 in treating the claimant as an assured shorthold tenant, and in refusing to recognise that they are a secure tenant.
PILC said: “The actions of Lambeth Council point towards them being the true landlord.
“Lambeth Council contend that the claimant is an assured shorthold tenant. However, a proper application of the law shows that she is in fact a secure tenant of Lambeth Council. The claimant’s tenancy was not obtained through the council’s homeless duties and is therefore not considered ‘temporary accommodation’ under Part 7 of the Housing Act 1996. Part 1, Schedule 1, paragraph 12 of the Housing Act 1988 prohibits the council from issuing assured shorthold tenancies.”
The claimant is represented by Alexandra Goldenberg and Saskia O’Hara of the Public Interest Law Centre, and Stephanie Harrison KC and Matthew Ahluwalia of Garden Court Chambers.
Goldenberg said: “Lambeth’s decision to rent these properties on the private market is unlawful and has created a devastating impact on hundreds of residents across the borough who have been evicted or are facing eviction.
“This is yet another chapter in a troubling history of estate ‘regeneration’ schemes that have disregarded the rights of residents and communities. It is time for Lambeth to take responsibility and do the right thing, starting with an immediate halt to all evictions.”
Rejecting suggestions that they would just be able to move elsewhere, the campaigners behind the legal challenge claim that many of those being made homeless would now have to seek housing from the same council which is evicting them.
A Lambeth Council spokesperson said: “We are aware an application for a judicial review has been submitted. We reject the claims made in the application and have highlighted why in writing to the applicant.
“They were rented out by HfL Living, a private provider which is not the council, through a letting agent at market rent and without any needs assessment, which would be the case for any social housing.
“Further its worth clarifying that Central Hill, where the property is situated, is one of the three estates the council is now carrying out an options appraisal. As such there are no current plans to regenerate the estate.”
They added: “We have approaching 5,000 homeless households from Lambeth in often poor quality temporary housing. Having now decided to take over HfL properties, we intend to use these properties to house families in most desperate need.”
The spokesperson also told Local Government Lawyer that there are no current demolition plans.
Harry Rodd
