LIB DEMS REVEAL “SHOCKING COST” OF HOUSING DISREPAIR IN LAMBETH
Lambeth Liberal Democrats today shine a light on the true cost of Lambeth’s woeful record on housing under the former Labour administration. The legal costs of housing disrepair from cases arising in 2025/26 totalled £35.1M (1) which is more than half of the Council's housing repairs and maintenance spend in 2025/26 of £63.57M (2).
Research by the Liberal Democrats shows the disturbing state of the Council’s Housing and Revenue Account (HRA), which is used to maintain and repair Council homes. They say it’s distorted by a slew of disrepair claims, which have lead to staggering levels of compensation and legal fees.
The Lib Dems say that’s an unsustainable figure, since it leaves the HRA hobbling along on less than half its resources, a situation that can only get worse.
Commenting, Liberal Democrat Councillor Simon Cordon, Chair of the Housing Scrutiny Sub-Committee, said,
“These figures expose the true cost of two decades of Labour one-party rule in Lambeth. For too long, residents needing repairs were met with delay, disbelief and costly legal disputes, rather than the timely repairs they were entitled to expect from their landlord.
"The fact that Lambeth is spending multi millions on disrepair claims raises a simple question: how many residents’ lives could have been improved if more of that money had been invested in fixing problems early, instead of fighting them later?
"Holding the balance of power at Lambeth, Liberal Democrats are already changing that culture. In July, Lambeth Council unanimously backed our proposal that contractors should not be paid until residents have signed off completed repairs. That is the difference Liberal Democrats are making in Lambeth: practical changes that deliver better services for residents and reduce unnecessary costs.”
Notes to Readers
1. In 2025/26 Lambeth Council spent £15.4m on legal costs for disrepair. A total of £7m of this was spent on the Council’s own legal fees, £6.7m covered the legal fees of residents suing the Council, and £1.7m was for damages and compensation.
In addition, the Council estimates that the legal costs of disrepair cases raised in 2025/26 but settled in future years will total £19.7M so a provision has been made in the accounts for this amount. See P115 of accounts 01. LBL SOA 2025-26 Draft SOA - 22072026 - change to adress valiadation.xlsb .The total cost of disrepair claims made in 2025/26 is therefore assessed to total £35.1M (£15.4M plus the provision of £19.7m)
2. The cost of £63.57M for repairs and maintenance of council housing in 2025/26 is contained on P140 of the draft 2025/26 Lambeth Council Annual Report and Accounts 01. LBL SOA 2025-26 Draft SOA - 22072026 - change to adress valiadation.xlsb