Lambeth Council launches high court action against TMO

Lambeth Council has begun preparing High Court legal proceedings against the Loughborough Estate Management Board (LEMB) after accusing it of failing to address serious governance, operational, and financial concerns.

The council has given LEMB multiple deadlines to respond to its demands, including re-running a continuation ballot to allow tenants and leaseholders to express their views on the board’s effectiveness. After LEMB failed to provide a full response by 7th April – or its own preferred deadline of 10th April – the council said it had “no choice” but to seek court intervention.

The dispute spans several months, with the council raising concerns about failures to meet key obligations under the management agreement. Specific issues include spending on foreign travel and gifts without adequate justification, as highlighted in a council report in November 2025.

The council is demanding three immediate actions: re-running a compliant ballot so residents can decide whether management should return to the council; convening a valid Annual General Meeting, as the online meeting held on 19th February 2026 was not valid due to low attendance; and allowing all eligible residents to become shareholders with voting rights.

A council spokesperson said the authority had been ‘patient and reasonable’ in seeking a response, but the reply received did not provide sufficient assurance that robust measures were in place. ‘We have taken the decision to apply to the High Court to compel compliance with the management agreement and to protect residents’ ability to have their rightful say,’ the spokesperson added.

Lambeth has acknowledged that its ability to act has been constrained by outdated Tenant Management Organisation legislation. The council is lobbying the government for greater powers in such situations and has held productive talks with the Ministry of Housing, Communities and Local Government.

The council assured residents that there will be no disruption to day-to-day services on the estate, which will continue to be managed by LEMB for the time being. It said it cannot comment further during active legal proceedings.