Key Points
- Lambeth Council will sell five long-vacant council-owned homes at public auction.
- Properties are in “extensive disrepair” and costly to refurbish for local families.
- Sale is part of a wider Housing Revenue Account (HRA) asset disposal plan approved in August 2025.
- Reserve prices set by independent valuers are confidential, kept commercial sensitive.
- Lambeth Council cites severe financial challenges, including budget gaps and falling reserves.
- Capital raised will be reinvested into other council homes and energy efficiency to support Net Zero 2030 goals.
- The council rejected refurbishing the homes or private sale options, opting for auction sale.
- Lambeth secured a £40 million Whitehall rescue borrowing deal to plug a housing account deficit.
- Critics see a liquidation of council housing stock rather than “making neighbourhoods fit for the future.”
- Sales go live 14 November 2025, with completion expected early 2026.
What homes are Lambeth Council selling and why?
As reported by Brixton Buzz, Lambeth Council has signed off plans to auction five of its vacant council-owned homes due to the cost of repair being deemed prohibitively high for council budgets. The properties identified for sale are:
- 4 Gauden Close, SW4 6LS
- 33 Loughborough Park, SW9 8TP
- 36 Lyham Road, SW2 5QA
- 56 Englewood Road, SW12 9NY
- 351b Wandsworth Road, SW8 2JH
According to the Officer Delegated Decision Report, these buildings are in “extensive disrepair” requiring “significant investment” to make them habitable. The council’s cost analysis found refurbishing them would place a
“significant financial pressure on the Housing Revenue Account (HRA) and its borrowing capacity.”
Despite being council homes previously earmarked for local tenants, Lambeth says the cost to make them fit for occupation is “too high,” leading the authority to sell them via public auction instead of repair or private sale.
Why did Lambeth Council choose auction over other options?
As conveyed in the report and explained by Brixton Buzz, Lambeth explored three options:
- Bringing the homes back into use via refurbishment – rejected due to financial impracticality.
- Selling via private treaty – considered too risky and less transparent.
- Auctioning to the private sector – selected to ensure “best consideration reasonably obtainable” by attracting cash-ready investors.
The council argues that open bidding at auction attracts developers who can move quickly, contrasting with first-time buyers potentially delayed by mortgage processes.
How does Lambeth justify the sales amid financial difficulties?
The council faces “unprecedented financial challenges” in both its general fund and the HRA, according to the report. External auditors have flagged budget gaps and shrinking reserves. Selling these properties is intended to:
- Generate capital receipts to invest in other council housing.
- Manage borrowing on the council’s accounts.
- Keep the HRA sustainable in the longer term.
The sale proceeds will also partially fund energy efficiency upgrades aligned with Lambeth’s Net Zero 2030 ambitions, which the council claims will improve residents’ health and wellbeing.
What is the significance of the £40 million Whitehall borrowing deal?
As reported by Brixton Buzz and included in council documentation, Lambeth secured approval on 20 February 2025 to borrow £40 million against future rental income to plug a large housing account deficit. This “rescue plan” is described as a temporary fix — a lifeline allowing the council to keep the HRA operational despite ongoing financial strain.
The borrowing essentially means council tenants’ future rents help underwrite current deficits largely caused by extensive disrepair costs and a need to raise capital through asset sales.
What does this mean for Lambeth’s housing strategy and local families?
Critics interpret these moves as signs of a slow but steady liquidation of Lambeth’s public housing stock. Selling homes like 4 Gauden Close and 351b Wandsworth Road reduces council-owned affordable housing options while relying on borrowing to balance accounts.
The council’s housing strategies aim to “make Lambeth neighbourhoods fit for the future,” but the sale of homes to private investors and reliance on debt raise questions about who benefits most. Instead of expanding council housing, Lambeth appears to be selling existing assets to fund current pressures.
What happens next and when?
The decision to sell these council homes becomes effective on 14 November 2025. The sales are expected to complete early in 2026.
By then, five more long-vacant council homes will have passed into private hands, adding to Lambeth’s capital but reducing directly controlled housing stock.
