Property Bubble Now Hitting Greenwich
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Westcomb e NEWS Free to 3800 homes, and in libraries & some shops March 2015 Issue 2 A community newspaper commended by the London Forum of Amenity and Civic Societies Monthly newspaper of The Westcombe Society: fostering a sense of community Property bubble now WN hitting Greenwich reporter e lived in Westcombe Park Well, no: as part of its Gateway units have been sold to foreigners as “Wfor more than seven years; Regeneration Project, the London an investment and will, like so many for the first five years our landlord did Borough of Lewisham has approved others around London, stand empty. nothing with our rent. Then two years 362 new homes: none of them have But one cynical local resident ago he raised it £70, last year he raised any affordable units. Apparently, commented: “I just hope that that is The original scheme in Abbey Wood envisaged an 81,000 it £50, and this year he wanted an affordable housing in the two new what’s happened. Otherwise, our sq. ft. Sainsbury’s foodstore, 5,000 sq. ft. of retail and extra £200. At that point, we knew it tower blocks is “not viable.” roads and schools could not cope.” commercial space and 220 new apartments, including some was getting ridiculous and we had to As Matthew Pennycook points out affordable units. The latter are out of reach for most local move,” a young mother told the WN. Broken guidelines on page 6, councils’ negotiations with people. The scheme is attractive to investors, because once Well, we know why, now: the Even the developers say current developers are often fraught. It will be Crossrail is completed, residents will have easy access to Royal Borough is being hit by the government policy is “deeply flawed” interesting to view documents relating Canary Wharf and the City. London housing bubble. According and “wrecks social mix.” Planning to the negotiations between Greenwich to Halifax, the UK’s largest regulations require developers to and Knight Dragon in 2012 over the mortgage lender, Greenwich now contribute funds for local amenities peninsula development following the Fact file (such as schools, affordable housing or court order that they be released. tops the list of towns and cities * In 2011, a report, The * 1.4 million families are roads – known as Section 106 Housing is seldom mentioned in recording the largest increase in World in London, published on council waiting lists. payments) – yet the housing minister, party manifestos – but it should be: house prices in 2014. by top estate agent Savills, Only one new Council Brandon Lewis allows developers to there are complaints about houses The average house price in documented billions of house is built for every 21 avoid or drastically reduce such becoming, not homes for working Greenwich rose from £263,183 to pounds of money from sold to tenants payments: in effect, putting company people, but an investment tool, and £328,044 in the 12 months to last overseas flowing into the * “Affordable housing” is a profits above people’s needs. John local authorities such as Wandsworth November. That increase, of 24.6%, capital’s prime housing relative term: it means Walker, director of planning in Tory- which have a duty to house homeless market. costing only 80% of the was almost three times the 8.5% rise controlled Westminster Council people, are carrying out what is being * The biggest investors in market value. ie. only recorded across the UK as a whole. described the policy as “insane.” called “social cleansing.” central London property affordable by a select few. We used to think that it was Across London, poor people are have been from Eastern “Affordable” should not property values in central London “Public land was given to being evicted so that the estates can Europe (15% of the mar- be confused with “social that were being hiked by rich profit-making private interests be re-developed “viably”. ket) followed by Middle housing”, which working foreigners seeking a lucrative in exchange for being allowed And then there is the running sore Eastern and North African Londoners urgently need. investment. But now they are on to rent back a slice of public space. of sky-high rents – people are having buyers (14% market share) * Britain’s ten biggest It's privatization by our doorsteps; or rather, we are on to pay a fortune for accommodation Average price paid: £5m, housebuilding companies another name.” Nancy Taaffe their doorsteps. little bigger than a box-room. Many and rising. have seen their profits tenants are now having to share * The number of afford- climb to £2.1 billion in “No social housing” Helen Mercer from Lewisham rooms, often with complete strangers. able homes built in 2014 –34% up on 2013. For example, new homes built in People Before Profit, said: “The England has fallen to an Much of the profit is from Abbey Wood were being marketed to Gateway development has nothing for sales to non-residential Signs of hope? eight-year low. Figures wealthy investors from Asia as local people. It brings more residents unearthed by the Bureau purchasers, mainly in In Greenwich, the Council has now containing “no social housing.” without providing any additional of Investigative Journalism central London. launched a Hidden Homes and Development Securities’ £85 m schools, medical care, trains, or show 42,710 affordable * 1 Hyde Park is now the Extensions scheme, costing £1.7 m, to Cross Quarter Scheme had an buses.” homes will be built in the most expensive in the convert and extend empty properties “exclusive launch” in the luxury To be fair, things are not being year ending this coming country. One apartment and other types of buildings into new Mandarin Hotel in Hong Kong; and made easy for local councils. For April –the lowest since was sold for £136m. You homes. But Cllr Chris Kirby, RGB’s investors were told that it is “a fully example, take Hutchison Whampoa’s 2006; this represents a can drive your sports car cabinet member for housing, admits: into the lift . private block with no social housing.” Convoys Wharf scheme. Lewisham 26% fall since 2010. “Available land we could use for The cheapest three bedroom home Council’s concerns –about the size of building new homes is at a premium in Abbey Tower is £528k. Britain's the planned towers, the number of Comments: in this borough.” biggest housebuilding companies are affordable homes, and serious road “Many people are struggling to pay their rent. I will fight Is that because so much of the land making a killing. Aua Yeboa, who traffic issues – were overruled by to ensure the council builds more and better social housing has been sold to private developers? works in a local beauty salon, near the Boris Johnson on appeal – breaking and drives a harder bargain with developers. I will also do In the longer term, things may be Abbey Tower, development, said: “I his own planning guidelines. everything I can to help families at risk of being forced out would love to buy an apartment – but looking more hopeful: there are plans of this ward by the Tories’ bedroom tax.” there’s no way that I can afford one. Homes – or investments? to build thousands of new homes on Cherry Parker (Labour Councillor) The homes should be for locals.” Are we going the same way here in the Peninsula. Of these, 25% will be "Labour councillors like to talk a good game on affordable Questions are being asked about Greenwich? Kidbrooke Village will categorised as affordable, and are to housing, but they simply don't deliver. Instead, as we have what controls are being exercised by have more units than the old Ferrier include student housing and special seen on the Peninsula, the council rolls over and lets big local authority planners: surely, any Estate it replaced – but with little or needs housing. There’s also a shared developers get their way. It's time for the Labour-run large building development should be no extra provision for schools, clinics, ownership scheme*. council to stand up to the developers and make sure required to include both social and or public transport. The WN has been Let’s hope that these plans remain Greenwich gets the affordable housing it needs." affordable housing? unable to find out how many of the “viable”. * See page 6. Matt Hartley Conservative Parliamentary Candidate for Greenwich & Woolwich < < News briefs > > The Westcombe Society NHS Greenwich On our doorstep . March for Homes Daffodil Tea Sat 7th March The Greenwich Clinical Commissioning The Fan Museum is putting on an exhibition Public anger over housing issues spilled over 2.00 - 4.00 pm for Senior Citizens: good company, homemade Group (CCG) are holding the next NHS to commemorate the Battle of Waterloo onto the streets in February. A number of cakes and sandwiches, a quiz, a free raffle – who wouldn’t Greenwich Governing Body meeting on which saw the final defeat of Napoleon local residents took part in a march on City want to come! If you haven’t had an invitation and would Wednesday 25th March at the Grand Salon, Bonaparte. Waterloo: Life and Times runs Hall to demand Mayor Boris Johnson deliver Charlton House, Charlton Road, London SE7 until May 10th, and also features fans made solutions to the capital’s deepening housing like to come, or know someone who would like to attend, 8RE from 1.30pm - 5.00pm. to commemorate other military events. crisis. A typical slogan was: “Social Housing, please contact Caroline on 020 8853 0948. This is a public meeting. Anyone who not Social Cleansing”.