Lambeth Council Accuses RTB Applicants of Delaying Sales

Key Points

• Lambeth Council has accused some Right to Buy (RTB) applicants of deliberately delaying transactions to retain maximum discounts before policy changes took effect.​
• A surge in applications occurred ahead of November 2024, when the maximum discount under the RTB scheme was reduced.​
• The council cites administrative delays and suspected strategic delays by applicants as key reasons for incomplete sales.​
• In related developments, Lambeth’s Counter Fraud team prevented £1 million in fraudulent RTB applications during 2024/25, including one case saving £127,700.​
• The council recovered 81 council properties valued at £3 million due to tenancy fraud, including unlawful subletting.​
• Overall, Lambeth saved £5.4 million in public funds through counter-fraud measures in 2024/25.​
• Eligibility for RTB requires at least three years of secure tenancy, though not necessarily with Lambeth Council.​
• Tenants may claim financial redress if councils delay processing applications beyond statutory timeframes.​

Why is Lambeth Council accusing Right to Buy applicants of delaying transactions?

As reported by Inside Housing, Lambeth Council has raised concerns that numerous Right to Buy applicants are “playing for time” in order to secure the higher property discounts that were available prior to November 2024. The council observed a significant spike in applications in the months leading up to the reduction in the maximum allowable discount under the national Right to Buy scheme. Since then, many applicants have failed to complete their purchases, prompting suspicion that some are strategically prolonging the process to retain eligibility for the more favourable terms.​

The council has not formally accused all applicants of misconduct but has highlighted that delays—whether due to administrative backlogs or applicant behaviour—have hindered the completion of sales. This has created complications in managing housing stock and fulfilling statutory obligations under the RTB framework.​

What changes were made to the Right to Buy discount in November 2024?

The UK government reduced the maximum discount available under the Right to Buy scheme in November 2024, aligning with broader housing affordability and fiscal responsibility measures. While the exact discount figures vary by region, London boroughs like Lambeth previously offered discounts of up to £110,500. The reduction was intended to slow the depletion of social housing stock and ensure public assets are not undervalued during sales.​

Applicants who submitted valid applications before the policy change remained eligible for the higher discount, provided they completed the transaction within the stipulated timeframe. This created a window during which tenants rushed to apply, hoping to lock in the financial benefit before the new rules took full effect.​

How is Lambeth Council tackling fraud in the Right to Buy scheme?

According to a report presented to Lambeth’s Corporate Committee, the council’s Counter Fraud team identified eight fraudulent Right to Buy applications during the 2024/25 financial year, preventing approximately £1 million in losses. One notable case involved a tenant who had purchased a property in Bristol in 2011—four years before securing his Lambeth tenancy—yet failed to disclose this or his substantial savings during the application process.​

As stated by Cllr Claire Holland, Leader of Lambeth Council:

“The council has a duty to ensure that every penny of council taxpayers’ money is spent as responsibly and effectively as possible. But at a time when the council is having to consider more challenging savings due to the demand-crisis facing councils where the costs of providing services are outstripping available funding, it is even more important that we investigate and stamp out every effort to defraud public funds”.​

The refusal of that particular application alone saved the public purse £127,700, underscoring the financial stakes involved in rigorous eligibility verification.​

What broader housing fraud issues has Lambeth uncovered recently?

Beyond Right to Buy fraud, Lambeth’s housing enforcement team investigated 174 cases of tenancy fraud between April 2024 and March 2025. These included instances of unlawful subletting, where council tenants rented out their homes to third parties while living elsewhere—often in privately owned properties.​

Such practices violate the terms of secure tenancies and exacerbate the borough’s housing shortage. The investigations led to the recovery of 81 council properties, collectively valued at £3 million. In addition, the council reclaimed 54 blue badges held fraudulently and achieved £600,000 in savings related to the “No Recourse to Public Funds” (NRPF) policy, contributing to a total counter-fraud saving of £5.4 million for the year.​

What are the eligibility criteria for Right to Buy in Lambeth?

To qualify for the Right to Buy scheme in Lambeth, applicants must have been secure tenants for at least three years, which do not need to be consecutive or with Lambeth Council—service with other public sector landlords also counts. However, certain exclusions apply: applicants are ineligible if they reside in sheltered housing for the elderly or disabled, if their home was specifically allocated to someone aged 60 or over, or if their tenancy is tied to their employment with the council.​

Tenants who inherited their tenancy begin their qualifying period from the date they became secure tenants, not from when they first occupied the property as a family member. Prospective buyers are encouraged to verify eligibility via the government’s Right to Buy portal or seek independent advice through the Homeownership Agency.​

Can tenants claim compensation if councils delay Right to Buy applications?

Yes. Under government guidelines, landlords—including local councils—are required to process Right to Buy applications within statutory time limits. If delays occur, tenants may apply for a reduction in the sale price using the ‘Initial notice of delay’ form (RTB6).​

If the landlord fails to respond within one month, the applicant can submit an ‘Operative notice of delay’ (RTB8), which allows rent paid during the delay to be deducted from the final purchase price. This mechanism is designed to protect tenants from financial loss due to administrative inefficiencies.​

What has Lambeth Council leadership said about housing fraud?

Cllr Claire Holland, Leader of Lambeth Council, emphasised the importance of protecting public resources:

“Our Counter Fraud team is working so hard to protect Lambeth and its residents from all those who try to cheat the system for financial gain, and their work tackling housing-related fraud is vital. When we are dealing with a housing crisis, and the huge cost of housing homeless people in temporary accommodation, we must ensure that our council homes only go to the people who need them most”.​

These remarks reflect the council’s broader stance on housing equity and fiscal accountability, particularly amid rising demand for social housing and constrained budgets.​

Lambeth Council’s recent actions highlight the complex interplay between housing policy, tenant rights, and public accountability. While the Right to Buy scheme remains a pathway to homeownership for many, the council’s vigilance against fraud and strategic delays underscores the challenges of administering the programme fairly and efficiently. With £5.4 million in savings attributed to counter-fraud efforts, Lambeth continues to balance tenant empowerment with the responsible stewardship of public assets.