Council scraps direct housing allocation policy after legal challenge from residents

A council spokesperson admitted that the policy had led to “fewer options to bid for” as it had prioritised allocating homes to families in very high need.

Southwark Council told Inside Housing it had suspended its annual lettings plan with immediate effect, “pending a review of current local housing needs and circumstances”.

It said: “Operating an annual lettings policy through direct offer only goes against our values of openness and transparency, especially when it comes to the allocation of housing.”

The council said it had reviewed the policy after the families’ legal challenge, as well as the announcement of emergency rehousing requirements for tower blocks on the Ledbury Estate, which involve 131 households.

Residents of the three towers, which are earmarked for demolition after serious safety issues were found in 2017, were told earlier this month that problems had worsened and that they needed to move as soon as suitable alternative housing could be found.

Southwark added that the borough was under “very considerable, diverse, urgent and increased” housing pressures which had developed since the direct lettings policy was introduced on 4 May.

It said the council was reviewing its full allocations policy, which will be consulted on from October.

Residents’ responses to the consultation will be used to build a policy that “takes into consideration current needs”.

The local authority said pausing the direct lettings policy “is not an acceptance that the policy was unlawful and discriminatory”.

Sarah King, cabinet member for council homes, said: “The review of our annual lettings plan is in response to an urgent shortage of homes we can offer our residents, including those who are homeless, combined with the recent legal challenge.

“The long-term shortage of social housing alongside spiralling rents in the private sector means that more and more of our residents need support. Despite Southwark’s extensive council housing build programme, the dire economic conditions over the past few years have brought all of these challenges to a critical point.

“The need to accelerate moving residents from Ledbury towers has caused even further pressure. We know that the number of homes people are waiting for far exceeds the number available in the coming months.

“As such, the council is taking action to consult on and deliver a new policy which is fit for purpose in these difficult circumstances and takes into account the current situation with housing supply, while providing full transparency.

“As well as this, the council has met with the deputy prime minister, and joined forces with councils across the country to highlight the importance of funding council housing to tackle the housing crisis.”