Lambeth leaseholders overcharged by council

Leaseholders in Lambeth have been subjected to significant overcharging by Lambeth Council, with errors in service charge calculations leading to residents being billed for areas substantially larger than actual grounds, and for systems that do not work. A leaseholder told a council meeting that a report on the Homeownership Service and Leaseholder Experience did not fully reflect these issues.

Errors in Service Charge Calculations

Tracey Gregory, a leaseholder, informed members of Lambeth Council's Housing Scrutiny Sub-Committee on Wednesday, September 30, that the council's report lacked detail on the serious impacts of errors in service charge administration. She cited a specific instance where leaseholders on one estate were charged for maintaining 10,000 square metres of grounds, when the actual area was only 1,400 square metres. This meant they were billed for an area seven times larger than reality, as reported by MyLondon.

Ms Gregory also highlighted that leaseholders had been charged over £100,000 for a door entry system that was not functional. She stated that such errors are being replicated across the borough, attributing them partly to deficiencies in systems for cost assessment and allocation by departments such as estate management and capital works. She told the committee that improving leaseholder services alone would not be sufficient to resolve these fundamental problems.

Council Response and Next Steps

Antony Wynne, representing the Lambeth Homeowners' Association, told the sub-committee that minor changes to services would not address the core issues of contract management. He noted that the extent of wasted money only became apparent when leaseholders challenged what he described as 'spectacular overcharging' and charges for work not done or not needed. He added that the council has had to refund leaseholders, but the association has not received answers regarding any recoupment from contractors.

Following the discussion, the Housing Scrutiny Sub-Committee agreed to establish a working group. This group will comprise three leaseholders and three committee members to address the concerns raised. The committee also recommended recognising the Lambeth Homeowners' Association as a representative body for leaseholders, subject to necessary governance arrangements.