Croydon council tenants will not be entitled to compensation for botched and delayed repairs.

The idea was put forward by the council’s scrutiny committee in June in the wake of the Regina Road scandal where residents were living in homes thick with black mould and sopping wet floors.

An independent investigation in 2021 found that failure to fix a minor leak for four years allowed it to grow into a major problem that put council tenants at risk.

The council is now working on putting together a new repairs contract.

The council’s scrutiny committee put forward a list of 13 recommendations, one of which was for a compensation scheme for residents paid for by the contractor.

At a Croydon Cabinet meeting on Wednesday (September 21), scrutiny chair Councillor Rowenna Davis said: “We are concerned that the mayor has rejected our recommendation that the contractor should have to pay compensation for botched jobs.”

But cabinet member for homes, Councillor Lynn Hale, said the money for a compensation scheme would have to come out of the Housing Revenue Account (HRA) – a ring-fenced fund for the council’s housing stock – meaning it would take money away from potential repairs. 

Cllr Hale said: “I appreciate the deep concern that residents have raised regarding disrepairs. 

“The time that people have waited is unacceptable and the state of the properties continues to be unacceptable. We are continuing on working on the new repairs contract, there is a lot of work to do on that. 

“The money that [the compensation] would come out of the Housing Revenue Account (HRA) and the focus at the moment should be getting these homes back into a decent state of repair.”

The new repairs contract of 10 years will cost the council around £200 million.

In her written response, Cllr Hale said as part of the council’s housing improvement plan, the complaints and compensation approach will be reviewed with residents.