Council confirms paying £1.8m+ on agreements with leaseholders containing confidentiality clauses

The London Borough of Lambeth has admitted to spending more than £1.8m on legal fees for non-disclosure agreements with leaseholders.

Labour cabinet member for housing and homelessness Maria Kay was quizzed on the matter at a recent council meeting by Liberal Democrat opposition councillor Donna Harris.

Cllr Kay was asked how many non-disclosure agreements and confidentiality clauses were executed between the council and its leaseholders from January 2019 to September 2023, and for a detailed breakdown of the total compensation or ex-gratia payments made under these agreements and total legal costs

She replied: “During the period of January 2019 to September 2023, there have been a total of 119 agreements that contain confidentiality clauses between the council and leaseholders.

“The total amount paid following settlement in these has been £1,811,500. The information relating to any legal costs incurred in relation to these is not held.”

In August, the Local Democracy Reporting Service revealed that leaseholders awarded compensation for overcharged building work were told to sign the agreements to prevent them discussing these awards with neighbours who might be similarly affected.

Mark Smulian