Residents left in the dark over firm’s plans to buyout council estate

By Robert Firth, Local Democracy Reporter

Residents living on an estate have been left in the dark over a for-profit organisation’s plans to take over properties from the council. 

The move, if approved, would be a first for the UK, but residents are still none the wiser one year after plans were revealed.

People on the Lothian estate in Myatt’s Fields, between Brixton and Camberwell, said Birmingham-based Vision Homes – the firm that wants to take control of the Lambeth council estate – still hadn’t provided details about service charges residents could expect to pay if the buyout went ahead. 

PACCA, a local residents’ group spearheading the plans, wants tenants on the estate to vote to hand over management of 284 homes from the council to Vision Homes in a ballot, which could take place later this year.

The proposed takeover would affect the estate’s 234 council tenants and about 50 leaseholders, who will not be allowed to vote on the plans. 

One leaseholder said she had been left feeling ‘powerless’ because of the lack of information about the plans. 

She said: “They [Vision Homes] make promises that they will help with the cost of living and reduce rent and invest £4.4million into the estate if people vote yes. 

“There’s no mention of leaseholders, of what they would get. 

“It would have a massive impact on us because of all the costs of the building insurance and changes to rent.”

Residents also complained about being visited early in the morning and late at night by members of PACCA.

One resident said: “They came last week at 10.30pm. They put leaflets through the doors and the next morning they came at 6.45am. We want to be left alone. It has affected my mental health.”

If the proposed takeover goes to the ballot and is successful, Vision Homes has promised tenants one per cent rent reductions each year for the first three years. 

Residents with bathrooms more than 30 years old and in poor condition would get new ones, and those with kitchens more than 20 years old would have them replaced.

The extra cash to fund the £4.4million investment over five years would be loaned to Vision Homes “by a private family business” on very low interest rates of 2.4 per cent” according to PACCA’s offer document distributed to residents. 

A Lambeth Council spokesman said: “The council is opposed to the Vision Homes stock transfer proposal as we believe it will leave tenants and leaseholders in and around the Lothian estate worse off. 

“Residents are being asked to transfer the ownership of their home to a private, profit-driven company with no employees and no track record in owning, developing, or even managing social housing.

“There has been no transparency as to how Vision Homes were selected or who currently sits on the board. We believe these proposals could mean residents pay more. Vision Homes would charge VAT on top of costs that are otherwise free of VAT under Lambeth Council’s ownership.”

Pictured top: Vision Homes’ offices would be based at PACCA’s offices in Lothian Road (Picture: Robert Firth)