Lambeth Labour in rents increase confusion

1.41.40pm GMT Sat 24th Mar 2007

Labour have left tenants confused about who is paying the increased service charges

Beleaguered Lambeth Labour housing boss John Kazantzis is in more trouble after it emerged that tenants are about to be overcharged.

Complaints have been flooding in from tenants in so-called "street" properties (those not on estates) who have been receiving letters notifying them of their annual rent rise from April 2.

For the first year, tenants' payments are being broken down between rent and "de-pooled" or "unbundled" charges for such services as estate cleaning, grounds maintenance and care-taking.

As explained in an accompanying leaflet, "Tenants living in street properties will not attract communal service charges".

But the letter one street tenant has received lists £10.64 per week of charges for services he does not receive.

The mistake is likely to cost the council thousands of pounds. Not only will new letters have to be sent out, but notice of changes in rents has to be issued well in advance, otherwise any increases cannot legally be collected.

"Cllr Kazantzis is mired in confusion," commented Lib Dem housing spokesperson Cllr Jeremy Clyne.

"The new system of separating rent and service charges is supposedly meant to bring clarity. But Cllr Kazantzis has introduced a system whereby all estate tenants are to pay the same amount for services regardless of whether or how well services are delivered.

"This was already is going to cause endless complaint and confusion. Now on top of that we have tenants in 'street' properties being sent letters telling them they have to pay the charges, when the council had decided they won't have to pay the charges."

Roughly 4,000 of Lambeth's tenants live in street properties. The other 28,000 live on estates.

"The council rushed these changes through at a Cabinet meeting early in January, before consultation had ended and before any scrutiny had taken place. We warned about problems the change would bring. The reason Cllr Kazantzis has given for this haste is that it would prevent mistakes being made in the introduction of the new charges by allowing plenty of time for the housing department to prepare."