Over 3,500 Westminster council flats now owned by private landlords

Published by Max Salsbury for 24dash.com in Housing and also in Local Government

Over 3,500 former Westminster council flats sold under the Right To Buy are now in the hands of private landlords, according to a report to the council's Housing Scrutiny Committee.

The report reveals that the Council has sold 9,135 (45%) of its 21,243 Council flats and that 3,603 (39%) are now sublet and "owned by small and multiple landlords".

Some council estates now have fewer council tenants than leaseholders. For example:

•    In Bayswater there are 427 council tenants and 484 leaseholders
•    On the Churchill Gardens Estate there are 872 council tenants and 879 leaseholders
•    On the Millbank Estate there are 261 council tenants and 297 leaseholders
•    In Marylebone there are 417 council tenants and 463 leaseholders
•    In Paddington Green there are 450 council tenants and 453 leaseholders
•    In St John's Wood there are 743 council tenants and 849 leaseholders

Labour councillors have claimed that former council flats in Westminster owned by buy-to-let landlords are now rented out at more than £500 a week, over four times the average rent of council flats, and are out of the price range of the vast majority of Westminster residents in housing need.

Cllr Jonathan Glanz, Westminster Council's Cabinet Member for Housing and Corporate Property, said: “Each home that is sold to an existing tenant will be replaced on a one-for-one basis in order to provide another much needed affordable home in Westminster. By exercising their right to buy, people in these homes are actually providing us with the means to create another property for people on the waiting list.

"The council is committed to keeping rents affordable for priority groups and our policy means that they will be set well below 80 percent of the Westminster average.

“The sale of these homes helps to support the growth of balanced communities, offering a range of housing options.”

Many of the buy-to-let landlords are being subsidised by thousands of pounds of Government Housing Benefit payments which pay their tenants' rent.

Councillor Paul Dimoldenberg, Leader of the Labour Group, said: "The Right to Buy has transformed many council estates in Westminster into buy-to-let goldmines for private landlords.

"Rather than meeting housing need, some of Westminster's council estates are now providing buy-to-let landlords with increasing financial returns as rents continue to escalate, often with the help of a huge government subsidy via Housing Benefit payments.

"Meanwhile Westminster residents in overcrowded conditions have to wait even longer to get rehoused.

"We need a massive building programme of new homes at social rents right across London and an end to the current sell-off of more council property.

"Westminster's housing stock of homes for those on low incomes has been almost halved over the last 30 years. No wonder there is a housing crisis of epic proportions.

"When will the Government see sense and reverse its damaging housing policies?"