Lewisham councillors have stymied proposed changes to its housing management company, Lewisham Homes, which would allow a specific councillor who is also a tenant to sit on its board.

The Lewisham Homes board is its decision-maker, and is made up of seven tenants or leaseholders, five independent board members and three councillors.

Lewisham Council’s housing policy and partnership manager, Rachel Dunn, said the current rules, which stop councillors who live in a Lewisham Homes-managed property from sitting on the board, were “quite restrictive.”

“Arguably a councillor who happens to be a tenant or leaseholder for Lewisham Homes is a good person to be able to scrutinise how Lewisham Homes is operating under this change,” she said.

She told councillors there wasn’t any conflict of interest she could envisage, and none which couldn’t be dealt with.

Lewisham Council’s principal lawyer, Petra Der Man, said board members would declare their interests like councillors do.

But councillors questioned the rationale behind the changes.

Overview and scrutiny vice-chairwoman Juliet Campbell said: “Considering that there are councillors on the board already and there are tenants on the board already, if one needed more tenants, wouldn’t it be easier to recruit those tenants?”

Ms Dunn said the councillor would only sit on the board as a council member before it emerged the changes “came more from the process of nominating councillors to the board.”

Cllr Luke Sorba said “It seems to be the question we are asking ourselves is, is this a change to make things convenient for a member of the council?”

Cllr Alan Hall raised concerns that allowing just one councillor who was a tenant to sit on the board was “unfair”.

“If there was a total bar before, the reason to change it has not been made today as far as I can see,” he said.

Cllr Jim Mallory said there were issues about public perception of the changes.

But Ms Der Man said she was not sure calling in the decision was “the appropriate route to take.”

“If I can just explain, you could refer the matter back to the decision maker for reconsideration, but if it’s perception then there is a way around that.”

But Cllr Joan Milbank said it was an issue of “good governance.”

Ms Der Man then asked if the housing department go away and prepare more information about the rationale behind the decision.

But Cllr John Muldoon said the committee was only able to call in decisions that night.

The full cabinet will now have to reconsider the decision and decide whether or not to change it.

Councillors who sit on the board do not receive any pay or other compensation.