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East London social housing tenants battle US property company over rent hikes and possible eviction (19 November 2014)

Date: 19/11/2014
Duncan Lewis, Housing Solicitors, East London social housing tenants battle US property company over rent hikes and possible eviction

Tenants on the New Era housing estate in east London are facing uncertainty – and possible eviction – after the owners of the estate appeared to have scrapped plans not to impose a sharp hike in rents before Christmas.

Tenants on the estate have been fighting against plans to bring rents on the estate into line with current market rental values.

East London is one of the areas in the capital which has seen a marked increase in property prices during the house price boom, pushing up rents as a result.

Traditionally, areas like Hoxton – where the New Era estate is located – were considered areas where low-income households settled. However, Hoxton has become one of London’s most sought-after areas for property, because of its close proximity to the City and popular areas like Islington.

A hike in rents on the New Era estate could mean tenants being faced with increases in rent from around the current level of £600pm to £2,400pm.

The Evening Standard newspaper reports that last week tenants on the estate thought they had won a reprieve in rent hikes, after the Benyon Estate said it was to sell its 10% share in the estate and would withdraw from its contract as managing agent.

Tenants then took their fight to the estate’s owners – US investment company Westbrook Partners – to try and persuade it not to raise current rents to market value.

Councillors in Hackney confirmed that an “informal agreement” not to raise rents until spring 2016 had been put in place.

However, by Monday (17/11/14) it is alleged the council learned that Westbrook Properties would not be sticking to the agreement – and had plans to refurbish the estate and rent out the existing flats without secure tenancies and at market prices, without providing any affordable housing for social housing tenants on the estate.

There are currently 96 flats on the estate – and every tenant has a break clause in their contract which would enable Westbrook Properties to evict them within weeks, potentially making them homeless before Christmas.

Leader of the New Era 4 All campaign, Lindsey Garratt, told the Evening Standard:

“The idea they’re going to evict all these families in the next few months – it’s nuts.

“I think it shows signs by Westbrook that they’re acting in such a desperate way.”

New Era’s landlord Hoxton Regeneration – which is owned by Westbrook – said that management of the estate would be handed over to Knight Frank LLP.

Hoxton Regeneration issued a statement:

“Knight Frank LLP will be contacting tenants to introduce their team – existing staff at the property will continue to perform current duties.

“Hoxton Regeneration will work with Knight Frank to continue to assess plans for the future of the estate.”

Westbrook Properties was unavailable for comment.

Duncan Lewis Housing Solicitors

Duncan Lewis housing solicitors can advise rental tenants and social housing tenants on a wide range of housing matters, including Landlord & Tenant disputes, Local Authority housing and unlawful or malicious eviction.

Duncan Lewis is one of the UK’s leading providers of Legal Aid and can also advise on:

• Disrepair of rented property
• Housing Benefit
• Housing possession
• Mortgage repossession
• Nuisance neighbours.

For expert legal advice on housing, call Duncan Lewis housing solicitors on 020 7923 4020.


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