Anger as leaseholders face huge bills
Demands for five-figure sums will be sent to 3,500 leaseholders in the coming fortnight for works such as roof and windows replacements carried out as long as eight years ago. In almost all cases, the cash demands from Labour Lambeth are expected to be disputed because of the poor quality of the work and its exorbitant cost.
The council has admitted leaseholders were not billed before because of its housing department’s “inconsistent practices” and misplaced files. This gross incompetence means leaseholders face a lottery over who has to pay as the struggling council tries to balance its books after it racked up huge overspends over the past 12 months.
While the 3,500 will have to find huge lump sums to foot the bills, a further 2,000 will have their bills reduced or cancelled because the council does not have the information required to issue the demands.
Council officers have had to write off up to £4million worth of works because they cannot process them, admitting that thousands of other leaseholders will have to “cope with a large debt in a difficult financial climate”. An official report warns the council will take legal action against those who do not hand over the cash.
Conservative councillors have slammed the move, with Cllr Irene Kimm saying: “This could not have come at a worst time for leaseholders, who are going to face huge bills because of the council’s incompetence.
“In many of these cases, the quality of the works carried out is poor and the cost to the leaseholders is extortionate.”
Is anyone concerned at the works planned for Lambeth Council Estates in Princes/Oval Ward (e.g. Pella, Malmsey, Duffell, Dunmow Houses etc – 13 in total) where the three tendered prices were £7.4m and £9.2m (and slightly more for the third tender) plus fees. Given that the two named companies (including the one that looks to have been awarded the tender) have been accused of illegal bid rigging and ‘cover pricing’ by the Office of Fair Trading, aren’t these prices suspect and doesn’t the whole tender process need to be repeated?
p.s. Cover Pricing is deemed endemic in the roofing and construction industry – it is where a group of companies collude to take it in turns to let one company underbid all the others but at a higher rate that would happen in a fair and truly competitive process). It’s called a cartel. I look forward to the OFT ruling due next month, but worry it’s going to be too late for Lambeth residents and tax payers.