Sixteen social housing households in Marylebone risk losing their homes after a Court of Appeal ruling allowed the property's new private landlord to charge market rents.
The homes were originally required by Westminster City Council to remain affordable under a Section 106 agreement but were sold following the previous owner's bankruptcy.
Some tenants have reportedly been offered rents several times higher than their current payments.
Westminster City Council began legal action against the landlord in 2024, challenging the decision to abandon the affordable housing agreement, but the challenge was unsuccessful.
The council is now supporting affected residents with new homelessness applications, while Labour councillors have called for suitable replacement accommodation to be provided.
A council spokesperson said: ‘We recognise that this is an unsettling time for residents and we continue to work closely with the affected households - providing advice and support with their housing options.’
