Homes for Lambeth judgment available now – Campaigners Vow to Fight On

On 17 June 2025 Lambeth residents and campaigners attended the High Court to argue the case that Lambeth Council have been unlawfully renting homes on the private rented sector under insecure assured shorthold tenancies (‘AST’s), and have now made a decision which will see these tenants made homeless.

You can find more details of the grounds of Judicial Review here

Tenants argued that local authorities are prohibited in law from renting assured shorthold tenancies, and that Lambeth had created a company, Homes for Lambeth, to circumvent this. The Judge was not convinced of the tenant’s arguments. He found that there was nothing in law which would prohibit Lambeth creating a company and that company going on to grant assured shorthold tenancies. The Judge found that there was no evidence to show that Lambeth had evaded the law, and that creating Homes for Lambeth was part of a wider housing strategy to support regeneration of the Central Hill estate, secure funding, avoid risk and deliver affordable homes.

Lambeth Council is the sole shareholder of Homes for Lambeth. However, the judge found that Lambeth had no statutory duties towards the tenants, that there was no sole commercial purpose for setting up the company and that no basis to pierce the corporate veil.

The Judge gave his reasons for refusing permission at the oral permission hearing on the 17 June 2025.

For further details, we have obtained the transcript of this judgement, which you can find here.

However, this case raises important questions over how Local Authorities are delivering housing and how they are using their stock whilst undertaking regeneration programmes. If using a company in this way is lawful, then Lambeth and all local authorities have carte blanch to use their stock as private rented sector housing, rather than using homes as secure council housing.

This decision has also left tenants renting through Homes for Lambeth open to section 21, no fault evictions.

Although this judgment is disappointing, HfL Tenants are continuing their campaign, as renters face possession proceedings with some having to seek emergency accommodation from Lambeth Council. Others are trying to secure Temporary tenancies with Lambeth council in the same properties they resided in as private renters.

The case has drawn wide interest in London and beyond, highlighting growing concern over councils using council-owned companies to rent privately for income generation.  The spotlight on this issue is unlikely to fade anytime soon.