Monday 22 June 2020

London householders threatened by the demolition of 35,000 council homes

Thousands of Londoners face the loss of their homes, writes Paul Coleman.
Developers and politicians plan to demolish some 35,000 council homes on 100 London housing estates.
Research published by Estate Watch, a new website, shows the Coronavirus pandemic has not halted the destruction of London's publicly owned council homes. 
Local authorities - many Labour-controlled - remain determined to sell publicly owned council estate land cheaply to developers and collaborative housing associations.

Net loss
Estate Watch, produced by the London Tenants Federation and community group alliance Just Space, provides information for tenants and residents whose homes and settled ways of life are threatened by estate demolition and redevelopment - a process marketed as 'regeneration' by developers and politicians but condemned as 'social cleansing' by residents' groups.
Some 55,000 homes on 161 council estates across London have been demolished since 1997, says Estate Watch
Some 131,000 people have lost their homes as a result. Entire communities have vanished.
These London regeneration schemes result in the net loss of genuinely affordable and publicly owned housing.

Heygate
These net losses across London have intensified since Southwark Council 'partnered' with global developer Lendlease to demolish 1,212 council homes on the Heygate Estate in Walworth. 
Southwark Council had valued the 25-acre* Heygate site at £150 million in 2007 but then sold it to Lendlease for just £50m in 2010.
Research by Loretta Lees at the University of Leicester shows 3,000 people who lived on the Heygate were forced to move to other parts of Southwark and London - and many were financially compelled to leave London altogether.
Of 2,704 new regeneration homes being built at the site, only 82 might be offered at 'social rents' - but even these 82 might charge up to twice as much as council rents and thus unaffordable to Southwark's lower income households.


'Council house boy'
Mayor of London Sadiq Khan belatedly decreed in 2018 that housing associations and local councils - wanting Mayoral-controlled public funds to knock down and replace any council estate with more than 150 homes - must secure resident support.
This money can only be released if a majority of residents vote 'yes' to the regeneration scheme.

Mayor Khan, since being elected in May 2016, has approved millions of pounds in funding for the demolition of 82 estates. Khan resisted and delayed the introduction of ballots allowing many schemes to go through before the ballot requirement. 
Estate Watch further highlights how Mayor Khan has exempted 44 council estate regeneration schemes across London from having to seek residents' support through ballots.

Worse still, says Estate Watch, Khan - who campaigned for the mayoralty as the 'council house boy' - is also 'turning a blind eye to ballot papers where other options, such as estate refurbishment, are absent'.

Woodberry Down Estate
Ballot-exempted regeneration estates include the Woodberry Down Estate (below) near Manor House in north London where some 1,000 council homes remain threatened with demolition.
Labour-run Hackney Council 'leased' the 64-acre site for 999 years to a 'joint venture' between housebuilder Berkeley Homes and Notting Hill Genesis, the latter being a corporate merger of two housing associations.
The 'masterplan' is for 1,980 council homes to be demolished and replaced with 5,557 new units. However, none of these new units will offered as secure council tenancies; 3,292 will be for private sale and 2,265 will be 'affordable'.
Corporate profitability will determine how many of those 2,265 'affordables' will be offered as 'social rented' homes. Low-income, former secure council tenants - who take up these insecure Notting Hill Genesis social rent tenancies - will risk rising rents, higher service charges and more costly utility bills.

Overseas buyers
About 900 Woodberry Down council homes have already been demolished in a first phase. Overseas investors, mainly from Asia, reportedly snapped up between 42% and 55% of the new 3,292 private sale units - a brisk trade for the Berkeley Group's Singapore, Hong Kong and Beijing sales offices.
A one-bed Woodberry Down apartment was marketed for re-sale in June 2020 for £560,000 with running costs estimated at £2,310 a month, including mortgage repayments.

The Woodberry Down estate's regeneration will lead to the loss of
genuinely affordable homes for local people (Photo: © Paul Coleman, London Intelligence ® 2020)

Love Lane Estate
Estate Watch also features the Love Lane Estate in Tottenham, where families in 297 council homes are threatened with the demolition of their homes due to a regeneration agreement signed between Haringey Council and Lendlease.
The scheme also threatens dozens of long-established, family-run businesses on the Peacock Industrial Estate.
Labour-controlled Haringey Council says the scheme, branded with Lendlease as 'High Road West', would build 2,500 new homes.
The Council, led by Joe Ejiofor, says it will 'own 500 of these replacement homes'.
However, the Council says these new homes depend on a 'viably deliverable scheme' that will enable Lendlease to make a profit.
Developers, like Lendlease, aim for a 20% return on such London council estate regeneration schemes - a corporately-driven level of return that frequently leads to initial promises of affordable and social rented new homes later being broken.
Haringey Council says it needs the Mayor of London to release public funds to help make the Love Lane Estate regeneration viable to keep Lendlease on board.
But residents must vote 'yes' in an upcoming ballot before those public funds are released.

Secure and temporary
Haringey Council began rehousing secure Love Lane Estate council tenants in February 2015. Many of these tenants lost their secure council tenancy status by being moved off the estate to housing association homes on insecure renewable shorthold tenancies.
Since then, Haringey has moved homeless families into 'temporary accommodation' on the Love Lane Estate.
Some 190 homeless families, many with children, now form the majority of the estate's households. Many have now lived on the estate for several years.
These families have since established strong links with local schools and workplaces.
The majority of these households are in low-paid work and are ineligible for benefits - and many are families of Caribbean, African, Indian and European heritage.
They will not be able to afford to buy or rent new private homes on Lendlease's 'High Road West' development - nor even any of its planned 'affordable' homes.

Localism Act
So, why would a council - intent on demolishing a council estate in order to replace it with luxury private housing - temporarily house homeless families on an estate targeted for regeneration?
Haringey Council has a statutory duty to house homeless families living in hostels and other temporary accommodation.
However, in terms of the law, the Council can more easily move these temporary tenants off the estate into housing association and other private sector accommodation - particularly if the Council assumed responsibility for these homeless families after 9 November 2012.
That is the day the Conservative-Liberal Democrat coalition government's Localism Act 2011 came into force. A council can end its duty to house a 'post-2012' homeless individual or family if that household refuses an offer of an assured shorthold tenancy in a housing association or private sector home.

Hindered
This clause makes it easier for Haringey Council to legally shunt post-2012 temporary residents off the Love Lane Estate. Their removal would enable the developer to begin demolition.
But, since 2018, Mayor Khan's ballot requirement - albeit belated - has hindered Haringey and Lendlease's plans. Temporary accommodation householders must be allowed to vote.

Viable
Haringey Council says it is 'consulting' with all Love Lane Estate residents in advance of its Landlord Offer to be published possibly in late summer 2020. This offer is centre on another promise; in the shape of a 'local lettings policy' which would the council to 'prioritise' residents currently in temporary accommodation on the Love Lane Estate.
The implication is that the Council could offer temporary households new secure council homes on the redeveloped site - of course, once there is a 'yes' majority vote and after these temporary accommodation residents 'temporarily' move off the estate.
The Council hopes this packaged offer will lure residents to vote 'yes' to demolition'.

Salaried council officers and developer-paid staff about to 'consult' residents
on the Love Lane Estate in February 2019
(Photo: © Paul Coleman, London Intelligence ® 2019)
TAG
Many temporary accommodation households on the estate are exhausted by being moved from one temporary home to another; so yet another 'temporary' move is not welcome.  New homes will take several years to build even if Haringey and Lendlease stick to their promise.
Residents also distrust Haringey Council and Lendlease. They feel the council and developer are pressuring them into voting 'yes' to demolition.
A cluster of council officials and Lendlease employees (below) - based next to the estate in council premises - has sought to convince Love Lane Estate residents that developer-led demolition and regeneration is in the residents' best interests.
The Temporary Accommodation Group, or TAG, a genuinely independent residents-led group, continues to rebuff what it says is 'deceptive' regeneration propaganda. TAG says this propaganda is 'aggressively' peddled by Council officers and 'community development' staff hired by Lendlease.
TAG states the local lettings policy is a 'bizarre promise' used by the Council to mislead tenants into voting 'yes'.
The residents' group suspects that households would be moved off the estate where they would likely remain indefinitely - during which the Council would look for ways to discharge its homeless duty to them.

Better deal
Estate Watch says such strong residents' groups, like TAG, are vital to protect tenants when it comes to ballots and estate demolition. It says councils and housing associations are 'conducting ballots on terms that go against the Mayor of London's Estate Regeneration Guidance', a document supposed to help council tenants and leaseholders secure a better deal from regeneration schemes.
For instance, the Mayor of London's own guidance requires councils and housing associations to thoroughly consider the option of refurbishing council estates - but Estate Watch says most fail to do so.
Councils also routinely fail to offer residents the options of owning and managing their estates - and they dismiss community plans that residents do put forward.
No such options seem likely to be offered to Love Lane Estate residents.

False choice
Worse still, some London councils are offering ballot residents a false choice of demolition or neglect. Luise, a leaseholder on Camden's West Kentish Town Estate, describes how council visitors 'helped' residents fill in their ballot paper.
"We were basically told that if we voted against demolition the estate would be run down even further," says Luise.
A majority of residents voted in favour of demolition.
Labour-controlled Camden Council says the tenure mix on the new development will include 40% 'affordable' housing - even though the Mayor of London requires a minimum of 50%.

Right to Buy
Regeneration mirrors the sale and net loss of council homes under Right to Buy. Only 28,090 council homes have been built across the entire country to replace 85,645 such homes sold under Right to Buy since 2012-13.
The irony is that council estate regeneration schemes threaten to demolish the homes of Right to Buy leaseholders too.
Many such leaseholders have been at the forefront of resisting regeneration schemes - notably at the Heygate and Aylesbury estates.
Leaseholders are offered compensation at only a small fraction of market prices, leaving them unable to buy homes locally.

Meaningful
Estate Watch highlights these ongoing net losses and community destruction.
A post-pandemic lull could see more ballots taking place in what remains of 2020.
'Tenants must be fully informed and have meaningful choices before a ballot,' states the London Tenants Federation.
'We've joined with Just Space to establish Estate Watch because of concerns that this is not happening.'


Sources: https://estatewatch.london, Mayor of LondonZoopla, Hackney Council, Haringey Council, 35% Campaign
Further information: London Tenants Federation, Just Space, TAG #TAGLoveLane, @TAGLoveLane

© Paul Coleman, London Intelligence ®, June 2020


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