Newham housing association offers homes to Hackney Council with £10m price tag
- Credit: PA Wire/Press Association Images
Councillors in Hackney are to vote on the release of up to £10million to purchase former right-to-buy properties from a Newham housing association.
If approved, it is hoped the homes bought from Local Space - a partnership between Newham Council and a group of housing professionals - will support an increased supply of affordable housing in Hackney.
According to Hackney Council documents, Local Space's rents are set too high for the majority of its tenants in temporary accommodation.
It is understood that should Hackney not purchase the properties, Local Space would sell them on the open market.
Local Space began when Newham Council gifted it 450 properties which were subsequently sold to fund a purchase of more than 1,000 properties – most of which are in Newham.
With Local Space’s rent charge set at 2006 housing benefit levels, and its contract including an annual increase of rent by inflation, its rents are now “well in excess of the maximum social rents that Hackney residents can expect to receive”, according to Hackney.
The 25 homes are valued at £400,000 each.