Build-to-rent landlord Legal & General could face a whopping multi-million-pound rent repayment order relating to its Bale & Anchor blocks in London.

The Lewisham Letter website reports that Lewisham Council has told residents in Bale House and Anchor House that the firm should have got a selective licence for their flats when the scheme was launched in July 2024 but that it only applied in July 2026. Rent repayment orders of up to 24 months’ rent can now be claimed under the Renters’ Rights Act.

One tenant estimated that L&G could end up with a bill of more than £15 million if it is also fined by the council - as letters sent out explain that Lewisham is also considering enforcement action.

She says: “For numbers’ sake, if everyone was paying £1,820 and claimed for the past 12 months, that’s up to £21,840 per flat. That amount times the 300-ish flats in the building is just over £6.5 million. And that’s the very lowest amount as bigger flats have higher rent. Plus Lewisham can fine them up to £30k per flat for not having a licence – which their letter implies they are going to – so again, that times 300 is up to £9 million in fines alone.”

Complained

Residents have also complained to the website that the blocks have experienced problems since opening including faulty water supply.

A Lewisham Council spokesperson tells LandlordZONE that the decision on a rent repayment order is a matter for the courts. She adds: “The council takes reports of landlords failing to meet their legal responsibilities very seriously and will always investigate concerns where there is evidence that regulations may have been breached.”

Delegated

An L&G spokesperson tells LandlordZONE: “L&G’s property managers, Urbanbubble, who are delegated responsibility for various property operations including obtaining licences, have been engaging with Lewisham since 2024, when the new licensing requirements were introduced. This is an administrative licensing matter, selective licence applications for all homes in the development are pending.

“Urbanbubble will continue to work constructively with Lewisham Council, and we will respond appropriately through the relevant processes to any individual enquiries.

“We take our resident experience seriously and investigate all concerns raised with us. Where issues are identified, we work with our property management partners to resolve them as quickly as possible, and support residents throughout the process.”

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