The head of Lambeth’s housing department has resigned, in the same week more evidence emerged of how the department is “in crisis”.

Chris Lee announced last week he was to leave the borough to take up a new post at Merton Council.

At the same time it emerged 1,240 leaseholders have just been billed again for £1.1m work they paid for a year ago.

Lib Dem leader councillor Ashley Lumsden said the duplicate billing - which means many leaseholders will be considerably out of pocket if they paid twice after not seeing the mistake - was another example of how the housing department was in crisis.

"It seems Lambeth Housing has a new problem every week.

"This duplicate billing is another example of how the housing department is in crisis.

“The administration have completely lost control of the leaseholders' service.

"It is another example of how they have brought chaos to the council's housing department."

Mr Lee’s resignation follows a difficult period for the housing department that has coincided with the launch of the Labour administration’s controversial Arm’s Length Management Organisation (ALMO).

The council’s housing account is millions in the red, and tenants have faced the highest rent increase in the country at 17 per cent.

The housing department is selling off close to 100 properties to balance the books while demand for its housing stock rises and the number of empty council properties has increased.

Tenants’ Council gave the ALMO - which forms part of an ambitious bid for £220m to transform the council’s housing service - a vote of no confidence at a recent meeting.

Coun Lumsden said he wished Chris Lee well in his post but he was dealt an impossible hand when Labour decided to transfer Lambeth housing to an unaccountable ALMO.

Lib Peck, cabinet member for housing and regeneration said: "We thank Chris for his dedication and commitment to Lambeth, and wish him luck in his new role at Merton".

In relation to leaseholders being given duplicate charges, a Lambeth Living spokesperson said: "We are currently rectifying this issue.

"All affected leaseholders have been identified and will be notified in writing of any necessary adjustment when the calculations have been made.

"The duplicate billing arose from work orders in 2006/07 that were charged again in 2007/08."

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