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Leaseholders in Lewisham to be recharged due to £7.5m deficit in major works programme
Lewisham Council has reported a £7.5m deficit in its major works income for 2023-24 due to a “timing difference with bills due to be raised in forthcoming financial years”, which means leaseholders will have to be recharged for repairs.
The council said that the gap in investment means it is “likely that the figure of non-decent homes would increase” from the 17% identified at present based on the initial findings of a condition survey.
When asked what this figure would increase to, a Lewisham Council spokesperson told Inside Housing: “Our stock condition survey is ongoing and on schedule to complete in the autumn.
“We prioritised buildings we considered to be at risk of damp and mould, based on existing data, so it would not be appropriate to extrapolate a figure based on the early stages of the survey.”
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The gap in investment was included in a financial monitoring report that is due to go before the council’s Public Accounts Select Committee Agenda on 9 July.
According to the 2023-24 financial monitoring report, the council said that the deficit relates to works carried out on homes that needed to be recharged to leaseholders, although this amount “is in dispute”.
It said: “More investment was required to bring all of the housing stock up to the Decent Homes Standard, particularly given the age of a number of the properties in the portfolio.
“In future years, works would be charged to leaseholders upfront.”
A new housing management system is also due to be in place in March 2025 to mitigate future deficits.
The report added: “Work was taking place with tenants to ensure that support was provided for those with rent arrears. There was a proactive rent collection team that worked with tenants experiencing difficulties.”
A Lewisham Council spokesperson said: “When we undertake major works to improve or repair the communal and structural parts of a building, we consult leaseholders before work begins in accordance with Section 151 of the Leasehold Reform Act 2002.
“Disputes occasionally arise and we engage with leaseholders to find a solution, including providing payment plans for larger amounts.”
Last year, Lewisham referred itself to the Regulator of Social Housing (RSH) over a potential breach of the consumer standards.
The council, which recently brought its ALMO back under direct control, said it was specifically asking the RSH to “examine whether we are providing decent homes, running an efficient repairs service, and completing fire safety actions within acceptable timescales”, following the transfer.
The council said that it expected to receive a response from the regulator in the coming months and that it welcomed an “external perspective on what the urgent priorities are, and believes this transparency will help us improve this vital service”.
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