The Crime of Destroying Social Housing in London – and the Significance (Or Not) of Jeremy Corbyn’s Response

A photo of the first stage of demolition on the Heygate Estate in Southwark, south east London, in April 2011 (Photo: Lotte Sheedy for the Architects Journal).This is my 2900th article since I began writing here on a full-time basis in May 2007. If you like what I do, please support my work as a reader-funded investigative journalist and commentator.

 

A great crime is taking place in London — the destruction of social housing estates by councils, who, squeezed of cash by central government, and, for decades, prevented from spending money on social housing, have entered into deals with private developers, in which housing — primarily estates — that the councils claim they have no money to refurbish are demolished, and replaced by new developments that offer huge profits for the developers, but that provide no social housing, or a risibly small amount.

In recent years, the purely private developers have been joined by housing associations, the preferred choice of governments, since the time of Margaret Thatcher, for managing social housing. However, with their central funding completely cut by the Tories since 2010, they have also been obliged to embark upon more and more developments featuring a large component of private housing to subsidise their properties for rent.

A further complication is that, in one of the most cynically breathtaking acts of spin in modern British history, the social housing provided is generally what is officially termed “affordable,” but which, in reality, is not affordable at all for most Londoners. Boris Johnson, during his eight destructive years as London’s Mayor, set “affordable” rents at 80% of market rents, and in most of London — if not all — market rents are so out of control that those on the median income in London (the level at which 50% of workers earn more, and 50% earn less) are paying up to 70% of their wages on rent, when the acceptable model — in pre-Thatcher days — used to be that no one should pay more than a third of their income, just as, before the insane bubble that has more or less existed since New Labour took office in 1997, the acceptable cost of a house was no more than three and a half times a worker’s income. Read the rest of this entry »

Support Hoxton’s New Era Estate Tenants in Their Struggle Against Rapacious US Landlord Westbrook Partners

The two young women in the centre and the right of this photo live on the New Era Estate in Hoxton, and were part of a group of protestors that, on December 1, 2014, had just handed in a petition - of nearly 300,000 signatures - calling on David Cameron to protect them from the rapacious US property developers (Westbrook Holdings) who bought their estate earlier this year and now want to remove the tenants from the flats in which many have lived for decades, paying rents similar to those in council housing or housing associations. If evicted, many of these hardworking people will have to leave London entirely, because of the rampant greed in the capital that shows no sign of abating (Photo by Andy Worthington).Congratulations to the tenants of the New Era Estate in Hoxton for mounting a major campaign to oppose attempts by the US property company that bought up their homes to price them out, in an act of naked greed that ought to make any decent person feel rather queazy about how greed has become the sole measure by which society as a whole measures success.

The New Era Estate — home to 93 families in several blocks of flats in Hoxton, where London’s hipsters mix with council tenants — was built in the 1930s as workers’ housing, a private enterprise by a socially responsible family whose activities echoed what was being undertaken at the time by the London County Council. The Lever family, which built the estate, ran it through a trust — and kept the rents genuinely affordable — until March this year, when it was sold to a consortium, led by the US firm Westbrook Holdings, in which Tory MP Richard Benyon’s family firm also had a stake — and the Benyons, it transpired, took over the running of the estate.

In June, the Daily Mirror reported how rents had already been put up by 10% and how, at a meeting with tenants — many of whom have lived on the estate for decades — Richard Benyon’s brother Edward “announced plans to ­refurbish the 1930s homes and build more flats on the roof,” as the Mirror put it.

“The goal, which is something I have had to say to all of you, is the fact that the rents will be going to market value,” he said, meaning, quite possibly, a tripling or quadrupling of the existing rents, because of the hipness of Hoxton and the complete absence of any kind of rent control. Landlords, if they can get away with it, can charge £2000 a month for flats whether they are new, refurbished or run-down (making a total of £24,000 a year), even though the average income in the UK is only £27,000. Read the rest of this entry »

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Andy Worthington

Investigative journalist, author, campaigner, commentator and public speaker. Recognized as an authority on Guantánamo and the “war on terror.” Co-founder, Close Guantánamo, co-director, We Stand With Shaker. Also, singer and songwriter (The Four Fathers) and photographer.
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