Mayor Damian Egan has described the “cartel” of London landlords buying properties to convert to one-bed flats in Whitefoot, Downham and Bellingham – with 50 family homes lost to flat conversions.

Lewisham Council plans to make landlords apply for planning permission before they convert houses into micro units from March next year in Bellingham, Downham, Whitefoot and Grove Park.

Councillors made calls for the rule to be put in place immediately, but Lewisham must first consult on the plans, Mr Egan explained.

He said: “Under Article 4, which is the government’s legislation,  we have to do a one-year consultation. If we don’t, those landlords can claim compensation from the council.

“We are going through that process.

“In my view we should have gone through this process a lot earlier. I think it’s absolutely scandalous,” he added.

He said there was a “cartel of landlords” buying properties in the south of the borough.

He added: “There is a ring around London where you have got this line where the local housing allowance changes from inner to outer London and why that is important is that the edge of the Lewisham falls in at Whitefoot, Downham and Bellingham.

“You can buy a three-bed house for £400,000 to £450,000 and people are converting it into six one-bedroom flats – tiny micro units.

“As long you can fit a shower, kitchen sink in there and a couple of hobs you can call it a kitchen legally, and they are allowed to charge £890 a room. It’s become extremely lucrative for these landlords.

“We have imposed the Article 4 direction in three wards where there is a high prominence of these HMOs [house in multiple occupation]. We think we have lost 50 houses to the cartel,” he added.

Mr Egan encouraged residents to add their view on the consultation to start the Article 4.

Visit https://consultation.lewisham.gov.uk/planning/article4hmo/ for more information.