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£140m flat becomes London's most expensive property as 1000s forced out by bedroom tax

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£140m flat becomes London's most expensive property as 1000s forced out by bedroom tax

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

One Hyde Park One Hyde Park

A London flat has sold for £140 million to become the city's most expensive property - in a borough that has seen over 2,500 low income families forced out by the bedroom tax and other welfare changes.

The 16,000 sq ft penthouse at residential development One Hyde Park has reportedly been sold to an eastern European buyer.

Though the sale equals the record set for another of the Westminster complex's flats, work needed to complete the home will push its value to an astonishing £10,000 per sq ft.

CPC Group, the developer behind the sale, said: "One Hyde Park injected new vitality into the London super-prime residential market and helped to re-establish London as a global destination for property investment."

According to the Chartered Institute of Housing's UK Housing Review, the number of people claiming housing benefit in the private rented sector has fallen by nearly a third in Westminster, from 8,580 in March 2011 to 5,893 in November 2013, a drop of 2,687 (31.3%).

Government welfare reforms in April 2011 moved housing benefit rates to a lower level, reduced the rates for single people aged 25 to 34, and imposed a maximum cap which ranges from £250 for a one-bedroom home to £400 for a four-bedroom home per week.

According to the CIH report, across inner London, the number of housing benefit claimants in the PRS has fallen by 5.2%, whereas the number of claimants has risen across the whole of London by 3.9%. Across Great Britain the number of claimants has risen by 6.4%.

Councillor Paul Dimoldenberg, leader of the Westminster Labour Group, said; “Under the Conservatives, Westminster is becoming more expensive and more unaffordable for people on low and middle incomes. Low income families are being moved out to the edges of London or out of London completely, while middle income families can no longer afford to buy anywhere in central London. We need more new homes at prices that low and middle income families can afford to rent and buy.”

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