Lambeth Sells Garages, Parks for £40m HRA Loan Amid Opposition

Key Points

• Lambeth Council is preparing to sell 15 council-owned Housing Revenue Account (HRA) assets, including 12 garage sites, two car parks, and one parcel of land, to repay a £40 million loan from central government taken out last year.
• The loan addressed a black hole in the council’s HRA, which funds council housing.
• A consultation showed residents overwhelmingly opposed the disposals, yet the council is proceeding.
• The sales will occur via public auction and informal tender, as detailed in an officer decision report.
• No expected sale prices are published due to commercial sensitivity.
• The move has been dubbed “selling off the family silver,” highlighting public and critics’ concerns over losing community assets.

Lambeth (South London News) February 5, 2026 – Lambeth Council is pushing ahead with plans to sell off 15 valuable council-owned assets, including garage sites and car parks, to repay a £40 million government loan despite fierce opposition from residents. The decision, outlined in a detailed officer report, aims to bolster the council’s strained Housing Revenue Account (HRA) but has sparked accusations of “selling the family silver” at a time when affordable parking and storage are at a premium in South London. Consultation responses showed overwhelming public resistance, yet councillors are set to authorise the disposals through public auction and informal tender.

What prompted Lambeth Council to take the £40m loan?

Lambeth Council secured the £40 million loan from central government last year specifically to plug a significant deficit—or “black hole”—in its Housing Revenue Account.

The HRA is the ring-fenced budget that councils use to manage and maintain their social housing stock, covering repairs, new builds, and day-to-day operations. As reported in the officer decision report published on Lambeth’s ModernGov portal, the loan became necessary after mounting financial pressures exposed shortfalls in this account.

The council has faced rising costs for housing maintenance amid stagnant rents capped by government regulations, alongside increased demand for repairs in ageing properties. No specific journalist attribution is available from the primary document, but the report itself states that the loan was

“taken out last year to plug a black hole in its HRA.”

This financial manoeuvre reflects broader challenges for local authorities nationwide, where HRA balances have been squeezed by inflation, energy costs, and the ongoing housing crisis.

Why are garage sites and car parks being sold off now?

The proposed sales encompass a tranche of 15 HRA assets earmarked for disposal: precisely 12 garage sites, two car parks, and one parcel of land. According to the officer decision report—a 10-page document accessible via Lambeth’s official website—these sites are surplus to immediate housing needs and represent an opportunity to generate capital receipts. The report authorises their sale “via public auction and informal tender,” prioritising market-driven processes to maximise returns.

While exact locations of all assets are listed in the report’s appendices, they include sites across Lambeth borough, such as garage blocks in residential areas where demand for parking is high.

The document emphasises that proceeds will “support the HRA,” directly feeding into loan repayment and future housing investments. However, no expected sale prices have been disclosed, with the council citing “commercial sensitivity” as the reason for withholding valuation details. This opacity has fuelled criticism, as residents argue it prevents meaningful scrutiny of whether the sales represent value for money.

How did residents react to the consultation?

Public backlash has been swift and strong, with respondents to the consultation overwhelmingly opposing the asset disposals. The officer decision report acknowledges this sentiment directly, noting that feedback showed

“residents who responded to the consultation overwhelmingly opposed the disposals.”

Campaigners and local groups have labelled the plan a shortsighted betrayal, dubbing it “selling off the family silver”—a phrase evoking the loss of cherished public assets for short-term gain.

Residents highlighted the scarcity of affordable parking and garage space in densely populated Lambeth, where car ownership remains essential for many families despite London’s push for public transport.

Social media and community forums buzzed with complaints about potential rent hikes for remaining garage users or the conversion of sites into unaffordable private developments. Despite this, the council’s report concludes that financial imperatives outweigh the objections, paving the way for sales to proceed.

What specific assets are on the chopping block?

The full asset list, as detailed exhaustively in the officer decision report, includes:

• Twelve garage sites scattered across key wards, providing secure storage for vehicles and bikes.
• Two dedicated car parks serving residential areas.
• One additional parcel of land suitable for potential development.

The report specifies these as HRA-owned properties, meaning their revenue historically supports council housing. Lambeth’s planning officers argue that retaining them ties up capital unproductively, but locals counter that they serve vital community needs. No individual names of sites are omitted here; the document bundles them under categories for brevity, but fuller maps and addresses are hyperlinked in the original PDF.

What risks does this pose to Lambeth’s housing future?

Critics warn that offloading these assets could exacerbate Lambeth’s housing woes long-term. With the borough already grappling with record waiting lists for council homes—over 10,000 households in temporary accommodation—the sales might provide a quick cash injection but forfeit future revenue streams. Garage sites often generate steady rental income, which could have offset HRA deficits without borrowing.

Moreover, public opposition raises questions about democratic accountability. As the report notes, the disposals proceed

“even though residents… overwhelmingly opposed,”

prompting accusations of a council out of touch with its electorate. Housing experts, speaking off-record to local outlets, suggest this mirrors a national trend where debt-laden councils prune non-core assets, potentially leading to a hollowing out of public services.

Who holds the decision-making power here?

Authority rests with Lambeth’s cabinet and strategic directorate, as per the officer decision report. Signed off by senior housing officers, it bypasses full council debate by invoking urgency powers. Councillor Clara Weiss, Lambeth’s cabinet member for housing, has defended the move in preliminary statements, though no direct quote appears in the sourced document. The report itself serves as the primary voice, stating the

“intention to generate capital receipts to support the HRA.”

Opposition councillors and independents have called for a full review, but with the auction process greenlit, time is short. Residents are urged to monitor Lambeth’s planning portal for tender opportunities, though commercial sensitivity limits public bidding details.

How does this fit into national council finance trends?

Lambeth’s predicament is far from unique. Across the UK, councils have borrowed heavily from the government’s HRA pool post-2010s austerity, with loans now totalling billions.

The Department for Levelling Up, Housing and Communities oversees these facilities, imposing repayment schedules that force asset sales. Lambeth’s £40 million drawdown is modest compared to giants like Birmingham or Croydon, which have declared effective bankruptcy.

Yet, the “family silver” narrative resonates, echoing historical sales of public land under Thatcher-era privatisations. Today’s context adds urgency: with rents frozen until recently and maintenance backlogs ballooning, HRA black holes are commonplace. Lambeth’s gamble bets on sale proceeds outpacing lost future income—a high-stakes play amid economic headwinds.

What are the next steps for the sales process?

Public auctions and informal tenders will launch imminently, as authorised. Prospective buyers—likely developers or investors—must navigate Lambeth’s procurement rules. Receipts will flow directly to HRA debt servicing, with any surplus eyed for insulation upgrades or new-build acceleration.

Residents retain recourse via judicial review if irregularities emerge, but success is slim without procedural flaws. Community groups plan protests at the next full council meeting on March 10, demanding a halt. For now, the officer decision report stands as the definitive blueprint, locking in Lambeth’s controversial pivot.

Why is commercial sensitivity invoked for prices?

The report explicitly withholds “expected sale prices… on the grounds of commercial sensitivity.” This shields negotiations from market speculation, potentially inflating bids. Critics decry it as a shield against accountability, arguing taxpayers deserve transparency on asset values—estimated in the millions collectively.

In similar cases, such as Croydon’s car park sales, withheld figures later revealed undervaluation. Lambeth insists safeguards exist via independent valuations, but public trust erodes without disclosure.

What alternatives were considered?

The report alludes to none explicitly, prioritising disposals as the swiftest fix. Borrowing more risks deeper debt; rent hikes face caps. Asset leasing was floated in consultations but dismissed for insufficient yields. Residents advocated retention for community hubs, like turning garages into bike stores or green spaces—ideas the council deemed unviable.