Residents of a Hoxton estate fear eviction before Christmas after their landlord backed away from a previous promise on rents.
Westbrook Partners, the US property firm that owns the New Era estate, has indicated to Hackney Council that it plans to push ahead with its original development plans and raise rents to “market value”.
When Westbrook Partners and the Benyon Estate bought the estate in April this year, residents were told they would be building penthouse apartments and refurbishing the existing flats. They were also informed that to fund the development their rent would increase from £600 to £2,400 a month.
Unable to afford the rise, 93 families protested against the plans, and with the help of ward councillors, secured a deal which delayed the rent increases and refurbishments until 2016.
But Lindsey Garrett, one of the leaders of the campaign to save New Era, said that of the 93 flats, all but seven or eight were rented on contracts with two-week break clauses, meaning families could be evicted before Christmas. The earlier promises about no new rent rises had never been formalised.
Last Thursday, the Benyon Estate, owned by Richard Benyon, the Conservative MP, announced it was selling its 10 per cent stake in the estate. Residents had mounted a highly publicised campaign, including a protest march with comedian Russell Brand, to force Benyon’s withdrawal from the estate.
Philip Glanville, the housing cabinet member, and other councillors delivered letters to residents on Saturday explaining the news the council had received from Westbrook Partners.
The letters stated: “Since this week’s departure of the Benyon Estate, we understand the council have now been informed that Westbrook no longer plan to honour [the deal] and have been told that their plan is to refurbish the current estate in its entirety and then rent all the properties without secure tenancies at market rent levels with no affordable housing.”
Danielle Molinari, another leader of the campaign said: “We were just breaking down when we found out. This has been a knock, but we are not going anywhere.”
She added: “Westbrook can threaten us as much as they like but we have everything to protect; our families, our children and our homes. We’re not going to go without a fight, because we have nowhere to go.”
The estate was built in the 1930s to provide affordable housing for all, but has become sought after by investors because of its proximity to the fashionable location of Shoreditch.
On Sunday, Westbrook Partners announced the appointment of property services firm Knight Frank to manage the estate, in place of Benyon.
Westbrook Partners was branded as “predatory landlords” in April this year when they invested in 44 buildings housing low-income families in New York, where they delayed repairs and raised the rent. Following a high-profile campaign by the tenants, Westbrook was forced to carry out the repairs and pay $1million in damages to the tenants.
You forgot to mention Westbrook defaulted on $190,000,000 of loans when they had to pay €100,000 in compensation so it didn’t cost them anything did it.
If a normal person didn’t pay their loans back they would be blacklisted
Why is our government letting the likes of these crooks turf out onto the streets it’s own citizens, when The U.S. Attorney General and The New York Mayor stood by their citizens. They were charged in America with committing thousands of building violations and over charging their tenants for legal fees. I wouldn’t want these people for a landlord if the rent was £100 per week.
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