Hammersmith & Fulham Council said it recognised that Brexit and Covid had presented challenges but cited failure to meet required resident service levels.
United Living will hand over its northern council territory to reserve contractor Morgan Sindall at the end of this month.
Council officials advised not to go out to competitive tender, warning the process would go beyond the winter months, when demand for responsive housing repairs typically increases significantly.
A spokesman said: “When we launched the new service, we introduced an annual review where we could look at the previous year with the contractors and decide what went well and what needed to improve.
“As part of the annual review and from meetings throughout the year, both the council and United Living Property Services have mutually agreed that the residents of H&F will be best served if United Living Property Services withdraw from the contract on 29 October 2021.
“The reserve contractor for United Living’s patch is Morgan Sindall which currently carries our repairs in the north of the borough. They will take over the day-to-day repairs in this patch from October.”