An attempt to sack the controversial company managing Lambeth Council’s housing stock has failed.

A motion of no confidence in Lambeth Living was tabled by the opposition at a full meeting of the council last Wednesday but was voted against by the Labour administration.

The motion followed a disastrous first year for Lambeth Living in which leaseholders and tenants have complained of a dramatic fall in the quality of the service they receive.

It was sparked by the emergence of a leaked report, by Government inspectors the Audit Commission, slamming the Arms length management organisation (Almo) for a string of weaknesses including customer care, void repairs, and leasehold management.

Tenants and the opposition have called for the council - which houses a quarter of the borough’s population - to improve service by taking back direct control of its housing stock.

But the administration argue the “Almo route” is the only way to achieve £250m of Government funding to transform Lambeth housing after decades of underinvestment and mismanagement.

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