‘We’re building slums of the future’

save earl's court

Throughout the filming of the Drift Reports/Trews Reports I have done on housing in London one of the features that has stood out has been the role of foreign investment driving property development in London.

Property Week have published an excellent article examining the boom in overseas buyers purchasing London property off-plan and the resultant feedback loop of developments aimed squarely at that market.

I recently heard Boris Johnson claim that less than 10% of property in London was sold to overseas investors – which is patently false according to Hannah Brenton’s article, placing the figure at 70% some sectors of the London property market.
Here are some selected extracts from the article:


“The surge of overseas money flooding into the market is supported by figures from Savills, which show that 70% of all new-build properties in the £1,000-£2,000/sq ft bracket were sold to foreign investors in 2013/14, with Chinese and Pacific Asian buyers accounting for more than 30%. However, the number of foreign buyers drops to 50% in the more affordable £450-£1,000/sq ft section of the capital’s new-build housing market. And across all sales and resales in prime London it stands at 39%.”

70% of all new-build properties in the £1,000-£2,000/sq ft bracket were sold to foreign investors in 2013/14

“This pipeline of new stock comes at a point where price growth in the prime market is cooling, with most forecasts predicting minimal growth or even a decline. Nina Skero of the Centre for Economics Business Research, is predicting a 3.35% drop in London prices this year, which she says will be partly due to the knock-on effect of prime residential on the rest of the market.”

“It’s all about a moment in time,” Farmer argues. “What was perceived as good for Vauxhall and Battersea four or five years ago has now got to a point where it’s so much driven by speculation that it’s created a lack of affordability – and there’s always a risk that you’ll get that feeding frenzy spreading out across London.”

“But on top of the risks of speculation, Farmer argues there is a “perfect storm” looming for developers as construction prices spiral upwards, which could see schemes stall in the next year.”

St. George Wharf, Vauxhall

St. George Wharf, Vauxhall

“Peter Rees, former City planning chief and now professor of places and city planning at UCL Bartlett, is despondent about the wave of foreign capital buying London housing, but does not think there is a risk of a bubble or a slowdown in sales because of the almost infinite amount of demand.
“The amount of money trying to escape from Russia, the Far East and the Middle East is just so great and there are so few top-notch targets like London that unless we do something to stem the flow it won’t stop of its own accord,” says Rees.

We’re building the slums of the future

He argues that there is a need for more high-density low-rise buildings in place of the glitzy towers springing up along the South Bank. “We’re building a product that is unsuitable for our market and suitable only for investment. We’re building the slums of the future. Derelict land is better than what’s happening at Battersea because derelict land has potential. Those developments have no potential because they’re locked in for 100-year leases to multiple owners.”

“Back at the Earls Court protest, Liberal Democrat councillor Linda Wade, who has been fighting against the scheme, says developers are now playing havoc with the planning system and that the huge number of high-end schemes risk creating “theme-park London”.
“The problem is we’ve got to a point where development has got out of hand, where urban planning is being dictated by developers rather than by local need.”
Gary Yardley, investment director at Capital & Counties, disagrees: “Schemes such as the Earls Court Masterplan deliver much-needed investment which provides more homes for our growing population and supports London’s continued success as a global city. We have also signed up to the Mayor’s concordat to prioritise offering homes to Londoners first.”
Capital & Counties has already announced that 95% of the flats in Lillie Square at Earls Court have been sold off-plan, with prices hitting up to £1,885/sq ft. This may be excellent for the developer’s cash flow, but it will do little to dispel protestor fears that the new flats will stand apart from the local community and from London itself.”

Read the whole article here

Thousands March for Homes in London

Yesterday saw thousands of people take to the streets of London in the March for Homes. This builds on recent high profile housing campaigns such as Focus E15, the New Era Estate, and Our West Hendon. But this is just the tip of the iceberg, as one campaigner from Feminist Fightback told me there are 70 social housing estates undergoing ‘regeneration’ which is often just a means of demolishing the existing homes, displacing the tenants and privatising some if not all of the land. The group has calculated that there are around 160,000 tenants facing eviction and/or rehousing. The land value of these 70 estates is estimated to be in the region of £52billion.

Fred & John Towers banner

There was a great spirit amongst the diverse range of Londoners traipsing through the rain from the congregation points of St Leonard’s Church Shoreditch and the Elephant and Castle – converging on City Hall, Boris Johnson’s Death Star. A lady thrust a yellow flier into my hand whilst I stood on a peddle-dash plinth trying to get a decent shot of the procession from a higher vantage point. ‘Fred & John Towers Not For Sale’ – Leytonstone’s own iconic tower blocks beside Wanstead Flats that played host to snipers and anti-aircraft missiles during the London Olympics. The E15 Campaigners have joined forces to help the residents who face being rehoused while Waltham Forest Council sell off one of the blocks and dispose of 70 Council homes in the process.

Fred and John Towers Leytonstone

Next week the residents of Earls Court will be demonstrating to save the heart being ripped out of their area with a £8billion development. New battle lines are being drawn all across London every day in the fight for the soul and the future of this great ancient city.

 

 

There is something rotten in the London Borough of Barnet

My latest Trews Report is on a situation at West Hendon in the London Borough of Barnet that is so scandalous it is difficult to comprehend. There appears to be a confiscation of public assets that are then gifted to private companies on such a scale that it felt like the train I’d taken from Farringdon had transported me to Pinochet’s Chile rather than North-west London.

The Council estate on the edge of the Welsh Harp Reservoir is being demolished to make way for a series of private apartment blocks currently being punted to investors as buy-to-let opportunities. The Council residents are being shunted off to a purpose built block away from the Waterside to the carpark. Leaseholders who purchased their homes under Right-To-Buy are being given less than half their value and offered a 50% stake in one of the new homes. And non-secure tenants are either being moved to another regeneration estate or discharged into the private sector. The SSSI rating of the Reservoir is being removed to allow for more construction around the lakeside.

It is a theft of public assets on an epic scale that would even make Berlusconi blush.

There is clearly something rotten in the Borough of Barnet – where the Mayor is a private landlord who receives large amounts of housing benefit from his own authority

Where at least half the councilors are private landlords.

Where the Tory Councillor responsible for housing, Tom Davey, refers to “benefit claiming scum”

Sign the petition to help Save West Hendon

The fight for the New Era Estate Hoxton

Here’s a short doc I made for Russell Brand’s Trews Reports about the situation on the New Era Estate in Hoxton .

Then last Saturday the residents of the New Era organised a day of action where eviction notices were served upon Benyon Estates and one of Edward Benyon’s homes.

Here’s a column about New Era in The Guardian