Lambeth Council will consider whether to renew Connaught's social housing maintenance contract next week, after the troubled company fell into administration.

The council's cabinet is due to approve an extension of the contract at its meeting on Monday.

However, the company, which currently carries out repairs on social housing in the borough, called in administrators KPMG on Tuesday, September 7, after lenders refused to give it more money.

Connaught continues to be employed by Lambeth this week but the cabinet will now decide whether to look for another contractor.

A spokesperson for Lambeth Living said a report with advice and recoomendations based on the lastest developments would be provided to cabinet at the meeting. The company's cash crisis had sparked fears among tenants and leaseholders services could stop or plummet in quality.

Lambeth's emergency repairs service and the service bringing empty properties back into use are provided by two parts of the company that have gone in to administration.

A spokesman for Lambeth Living, the company managing the town hall's housing, said it would be monitoring service levels being provided very closely, and contingency plans were in place to provide services if Connaught stopped trading.

A Connaught spokesman said it was aiming to continue to fulfill its contract with Lambeth while the administrators tried to save it.

Connaught provides a range of housing related services in Lambeth, but only some of the services are provided by parts of the business that have gone in to administration.

Environmental services, including estate cleaning and grounds maintenance, and compliance services, that provide important fire safety work, are provided by parts of the business not to have entered administration.