Labour in panic fire-sale of Council homes

11.53.45am GMT Wed 29th Oct 2008

Labour-run Lambeth Council has responded to the financial crisis in its housing department by launching a panic fire-sale of flats and houses. Many of the properties are family-sized homes. The council's change of policy means they will now be sold off even if they only require a relatively modest outlay to bring them up to a reasonable standard.

It plans to auction off 43 properties in the "first tranche" of sales from its massive portfolio of empty homes. "Having caused a huge increase in empty and derelict council homes, and facing a shortfall in funds because of its own mismanagement, Labour is suddenly doing a U-turn and launching a fire sale," commented Liberal Democrat housing spokesperson Councillor Jeremy Clyne.

"Having stalled an orderly and sensible disposal process, Labour is now making it possible to flog off a stack of family-sized homes that only require modest amounts to bring them back into use. The previous policy operated in accordance with a strict formula applied to void properties requiring expensive works to bring them back into use.

"Labour's new policy could, it seems, allow almost any empty property to be sold off. This is indefensible when families are stuck in overcrowded homes or cannot be moved out of unsuitable temporary accommodation because of the shortage of council properties," added Cllr Clyne.

Labour has presided over a huge increase in empty homes, the total now standing at almost 1,500, with the number of void properties requiring more than £5,000 to bring back into use (termed "long-cycle voids") shooting up from 460 to 600 in just the last couple of months.

Many of the properties now up for sale could have been sold off months and years ago, but Labour have held on to them, allowing them to become boarded up, causing a blight on the local neighbourhood, or even squatted. Now after hundreds of thousands of pounds have been wasted through loss of rent, security and other costs, they are being flogged off when the market is depressed. Liberal Democrat councillors want to know how much more has been lost by waiting until now to sell the properties. It is feared that a large number of Lambeth properties coming up for sale now in one go will further depress prices for the council's properties.

Concerns about the Council selling of homes which could be retained and brought back into use for a modest outlay is redoubled when the Council has decided to introduce a massive increase in rent for families in temporary accommodation, waiting for a council home.