Lambeth Council Buys Back RtB Homes to Boost Housing 2026

Key Points

• Lambeth Council proposes using £3.4 million in Right to Buy (RtB) receipts to purchase leaseholder properties on the open market before a March 2026 deadline.​
• Purchased homes will be held in the council’s Housing Revenue Account and used for families in temporary accommodation or secure council tenancies.​
• Over 28,000 people are on Lambeth’s housing waiting list amid a severe social housing crisis.​
• Cllr Danny Adilypour, Deputy Leader and Cabinet Member for Housing, Investment and New Homes, stated the move addresses government failures in social housing funding.​
• The council holds £47 million in retained RtB receipts, with £3.4 million due to expire; recent government changes allow 100% funding of social rent homes without borrowing.​
• Lambeth has spent £112 million repurchasing former RtB homes, second highest in England after Islington’s £146 million, part of a national £1.7 billion trend.
• In October 2024, Lambeth secured £14.5 million from the Local Authority Housing Fund for additional homes.​
• The initiative aligns with the Lambeth 2030 Borough Plan to increase high-quality housing and prevent homelessness.​
• Lambeth relies on nightly-paid temporary accommodation for 75% of homeless households, double the level of similar boroughs.​
• Almost 600 council and housing association tenancies were allocated between April 2024 and March 2025.​
• Related efforts include reclaiming 163 privately rented homes on six estates for homeless families, with over 60 already returned and nine relet.
• Cllr Danny Adilypour emphasised commitment to tackling the crisis through new homes and repurposing empty properties.​
• Historical context: In 2014, Lambeth explored buying back RtB homes in high-value areas like Waterloo for economic sense.
• Cllr Pete Robbins in 2014 noted buybacks would only proceed where they yield more units at lower rents.​

Lambeth (South London News) March 2, 2026 – Lambeth Council is poised to deploy £3.4 million from Right to Buy receipts to reacquire leaseholder properties, aiming to rapidly expand its council housing stock amid a dire shortage that leaves over 28,000 residents on the waiting list. This delegated Cabinet Member decision targets homes on council estates available on the open market, bypassing lengthy development timelines to provide immediate relief for homeless families and those in costly temporary accommodation. The move forms part of broader efforts, including £14.5 million secured from the Local Authority Housing Fund in October 2024, as the borough grapples with national failures in social housing investment.​

What Is Lambeth Council Planning with Right to Buy Receipts?

Lambeth Council currently holds £47 million in retained Right to Buy receipts, with half earmarked for housing development projects. A critical £3.4 million portion must be spent by March 2026, prompting the proposed buyback programme of leaseholder properties on its own estates.​

As detailed on the council’s Love Lambeth website, the purchased homes will enter the Housing Revenue Account, a ring-fenced fund for council housing income and expenditure. These properties will either house families from temporary accommodation or become secure council tenancies at social rents. Each acquisition undergoes independent valuation to guarantee value for taxpayers, enabled by recent government reforms permitting RtB receipts to cover 100% of social rented home purchases without extra borrowing.​

This targeted approach allows swift action when suitable homes arise for sale, addressing the imbalance where demand vastly outstrips supply.​

Why Is Lambeth Facing a Housing Crisis?

Lambeth, like much of London, endures one of the UK’s severest social housing shortages, exacerbated by successive governments’ underfunding and neglect of maintenance and new builds. More than 28,000 individuals languish on the housing waiting list, while the council foots bills for nightly-paid temporary accommodation for 75% of its 4,700 homeless households—roughly double the rate in comparable boroughs.

Despite allocating nearly 600 council and housing association tenancies from April 2024 to March 2025, far more applicants remain unhoused. Temporary placements, often in hotels or bedsits, prove expensive and inconsistent in quality.

As reported by the council, these pressures stem from sky-high rents and property prices across inner London, compounded by a national dearth of new affordable homes over the past 14 years.​

What Did Cllr Danny Adilypour Say About the Buyback Plan?

Cllr Danny Adilypour, Deputy Leader of Lambeth Council and Cabinet Member for Housing, Investment and New Homes, welcomed the initiative in a statement on Love Lambeth. He said:

“Due to the failure of successive governments to fund, invest in or prioritise the maintenance and building of social housing, Lambeth, like the rest of London, is in the grip of one of the most severe social housing crises in the country, with demand for secure, affordable homes far exceeding supply.”​

Adilypour continued:

“Buying back leaseholder properties on our estates is a practical and immediate way to increase the number of council homes available at social rent, reduce our reliance on costly temporary accommodation, and ensure more local families can access secure and stable housing.”

He added:

“We are determined to make every pound of Right to Buy funds work as hard as possible for local residents.”​

In a related 2024 announcement on reclaiming privately rented homes, Cllr Danny Adilypour stated:

“We are committed to doing all we can to tackle the housing crisis. The supply of affordable housing for vulnerable and homeless families is under huge pressure.”

He further noted:

“Bringing these privately rented homes back into use as council accommodation will deliver much-needed homes as quickly as possible for our most vulnerable residents in Lambeth.”​

How Does This Fit into National Right to Buy Trends?

Nationally, English councils have repurchased 8,600 former Right to Buy homes at a cost of £1.7 billion, with £1 billion expended since 2020, according to PA Media’s analysis of freedom of information responses from 117 authorities. Lambeth ranks second, having spent £112 million, trailing only Islington’s £146 million; Barnet, Haringey, and Brighton and Hove each exceeded £80 million.

Harry Quilter-Pinner, executive director at IPPR, critiqued the pattern in LocalGov:

“The scale of councils selling off properties, only to buy them back a few years later, highlights the absurdity of the austerity years – selling low, buying high, short-term savings at the expense of long-term costs, penny-wise but pound-foolish.”

He urged Westminster for sustainable local authority funding to avert repeats amid homelessness rises.​

What Are Lambeth’s Related Housing Initiatives?

The buyback aligns with Lambeth’s wider housing push, including the October 2024 £14.5 million Local Authority Housing Fund grant for extra purchases. It supports the Lambeth 2030 Borough Plan’s goals for more high-quality housing and homelessness prevention.​

Complementarily, the council plans to reclaim 163 privately rented homes on six estates from assured shorthold tenancies, repurposing them for emergency homeless accommodation. Over 60 have returned, with nine already relet; current private tenants receive relocation assistance per statutory duties.

Lambeth is also fast-tracking 381 void council properties for repair, with 133 now lettable, under an emerging Empty Homes Action Plan. This encompasses council tax hikes on long-term private empty homes.​

The New Homes Programme targets at least 500 affordable homes by 2030.​

Is There Historical Precedent for Buybacks in Lambeth?

As early as 2014, Lambeth Cabinet explored repurchasing Right to Buy homes in high-value Waterloo to bolster stock economically. Cllr Pete Robbins, then Cabinet Member for Housing and Regeneration, said:

“We’re exploring whether we are able to buy back former right to buy properties, which I think is a powerful statement, but we will only do it where it actually makes economic sense – ie where we can get a higher number of units.”

An officers’ report advocated buybacks in areas like Waterloo, where new-build viability yields fewer affordable units, allowing more homes at lower rents via existing RtB sales. This foreshadows the current strategy.​

What Challenges and Safeguards Are in Place?

Buybacks promise immediacy but hinge on market availability and valuations. The council mitigates risks through independent appraisals and full RtB funding eligibility.​

For reclaimed private rentals, tenant disruption is acknowledged, with support offered. Broader voids and empties work demands coordination via the Empty Homes Action Plan.​

Critics like IPPR highlight systemic fiscal shortsightedness, but Lambeth frames this as pragmatic amid constraints.​

Lambeth’s multifaceted response underscores urgency in a crisis straining resources, with buybacks offering quick wins toward stable housing for thousands.