A Labour-run London council has used a legal loophole to issue dozens of families with no-fault evictions more than a year after Sir Keir Starmer’s government pledged to abolish the practice.
The Guardian reports that Lambeth Council in south London has been able to serve section 21 eviction notices to 63 households by using an arm’s-length company structure to manage part of its housing stock.
While local authorities are normally barred from issuing no-fault evictions, the use of a council-owned company allows the practice under private tenancy rules.
Internal documents show officials began planning to reclaim the homes in 2023 but delayed the process until after the 2024 general election.
URGENT HOUSING NEEDS
Five households have already been evicted through the courts, two by bailiffs, while 24 families have left voluntarily.
The properties are being reclaimed to help meet “urgent housing needs”, including accommodation for vulnerable families in temporary housing.
The tenancies were managed by Homes for Lambeth, a group of companies established in 2017 to support estate regeneration projects. The organisation purchased former right-to-buy homes and rented them privately, despite being ultimately owned by the council. At its peak, Homes for Lambeth managed about 200 properties across six estates.
SECTION 21 ALLOWED
Following a 2022 review by former civil servant Bob Kerslake, the company began to be wound down amid concerns about poor performance. Around half of its tenants left voluntarily before formal eviction proceedings began.
In June, the High Court ruled that current housing laws do not prevent councils from creating companies that issue private tenancies, effectively allowing the section 21 notices to proceed.
Lambeth Council said it was acting legally and prioritising families in temporary accommodation, arguing that chronic underfunding and the wider housing crisis left it with “incredibly difficult choices.”
