Investment in housing for vulnerable, elderly residents has been frozen, with funds diverted to bring more mainstream social housing back into use.

The move by Lambeth Living has raised concerns the borough’s most vulnerable residents are being put to the back of the accommodation queue.

But Lib Peck, Lambeth Council’s cabinet member for housing, said the policy was a result of a higher demand for mainstream properties.

Some 104 vacant sheltered homes in Lambeth are empty, while more than 1,000 council homes are vacant.

Opposition housing spokesman, Lib Dem councillor Jeremy Clyne, said cheaper repairs on sheltered housing could reduce the numbers on the mainstream housing waiting list.

Coun Clyne said: “There is a queue of elderly people waiting to move into sheltered accommodation from homes that are no longer suitable, and in turn thousands of families who could in turn move into their homes."

Coun Peck said sheltered homes would be brought back into use if the demand was there.

A leaked email from Lambeth Living, seen by the Streatham Guardian, stated the reason for the change of policy was due to financial reasons.

But Coun Peck argued the town hall was simply using resources more wisely to meet customer demand.