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Boris Johnson warns Crown Estate over cheap homes sale
Jonathan Prynn, Consumer Business Editor1 Sep 2010
Boris Johnson has clashed angrily with the Crown Estate over its plans to sell 1,300 London homes reserved for key workers including teachers and nurses.
The Mayor told the head of the £6.2 billion property portfolio — run on behalf of the Queen for the benefit of the taxpayer — of his grave concerns that a new owner could force up rents.
The row between Mr Johnson and Sir Stuart Hampson, chairman of the Crown Estate, came on the eve of a board meeting at which it is expected to choose a preferred bidder for the homes.
The planned sale, expected to raise about £250 million, is opposed by many tenants. They live on four estates: Victoria Park in east London, Lee Green in Lewisham, Millbank in Pimlico, and Cumberland Market in Camden. The land has been in the hands of the Crown since as early as 1544.
Yesterday the residents' associations wrote to Sir Stuart accusing the estate of putting profit before its commitment to affordable housing.
The letter says: ”Your reputation for good housing management, built up over nearly a century, is now in rapid decline ... we face an uncertain future with a prospective new landlord which we have had no role in selecting and which could see irreparable damage to our communities.”
Richard Blakeway, the Mayor's housing adviser, said Mr Johnson was concerned about the lack of protection for future tenants. For example the new owner will have the right to put rents up at nine per cent a year.
Currently, tenants of Crown Estate affordable homes only pay about half the level of rent that would be charged by commercial landlords.
Mr Blakeway said: “The Mayor believes the Crown has a duty, as manager of the estate on behalf of the Queen, to ensure homes that are meant to be affordable remain affordable, and residents' rights are protected — he made that very clear to Sir Stuart.”
The Crown Estate has said the homes, which generate only £3 million a year profit, are “non-core” assets. It is thought that any proceeds from a sale would be reinvested in the Estate's hugely profitable and high-profile West End developments.
A spokesman for the Estate said: “The board is meeting today and the proposal to sell will be considered further. Specifically, the board will be asked to consider whether it wants to select a prospective purchaser from the bids we have received.
“We will communicate the outcome within the next week. Should the board decide to select a prospective purchaser today, no final decision to sell will be taken until further consultation with residents and stakeholders.”
Reader views (7)
PAUL, LONDON -
Paul, you no doubt support Margaret Thatcher's Famous Statement 'THERE IS NO SUCH THING AS SOCIETY'.
Your last sentence is immeasurably insensitive and inhuman.
Fortunately, we have a more Civilised and Intelligent Society.
Your Dyslexia and seeming total lack of care for others, is depressing.
- CHRISTOPHER CROWDY, Chelsea, S.W.3, 06/09/2010 11:13
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Paul, London,
Get your spell check to work .
Also you sound jealous that housing associations offer reduced rents ie non profit making opportunities for people to live in affordable housing.
Theres nothing wrong with not wanting to make a profit.
I reside in a housing association property on the Thames.
Its a great location the rent is affodable and I live centrally which is all a big plus.
The Crown Estates should think again.
I hope this news irritates you even more. 
- PATRICK'S OPINION LAMBETH, LONDON, 01/09/2010 18:01
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I have a novel idea "why cant Boris buy these properties from the Crown Estate and then rent them out?". We could call it council housing!!
After all does'nt Boris already have good connections to Prince Charles.
- Melvyn Windebank, Canvey Island, Essex, 01/09/2010 14:24
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Hey Paul,why don't we put up interest rates?Then the elderly would have higher incomes and vast amounts of London property would become available at affordable prices.Instead of society having to subsidize the clowns who caused this mess let's reward the ones who didn't
- Jack, London,UK, 01/09/2010 13:57
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Thank you Paul for your touching concern for elderly Londoners worried about losing their homes. They do not have an alternative, their incomes are fixed by state pension levels and low interest rates. They cannot choose, as you suggest, to leave London where they have lived all their lives. You don't work for the Crown Estate by any chance do you Paul? You seem to share their attitude and ethos.
- Alan, London, 01/09/2010 12:48
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The Crown Estate houses nurses, teachers, transport workers and others who would otherwise not be able to live in central London. We all rely on these people to keep our city running, on a day-to-day basis and especially in a crisis. How sad and short-sighted is it that some people think that these people, and others on low or moderate incomes should just "get out.” Who will tend to the sick, teach our children (to spell, for example!) and drive the trains if they do just that?!. THe Crown Estate also houses many elderly people who have made their contribution to society and want to remain in their homes in their older years. Again, how tragic that some people think that such people should simply be shoved out of the city. The fact is that the housing market has been over-inflated by speculators and landlords who have pursued profit at any cost. The Crown Estate and other housing associations fill a much needed gap as the Mayor has pointed out. The gradual loss of affordable housing would mean that London would be home only for the rich. That would be a sad future indeed for our capital city.
- Ben, London, 01/09/2010 12:21
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"the new owner will have the right to put rents up at nine per cent a year."
Hello! Welcome to the real world, a positin that pricate tenants have to deal with. It sickens me that people on hosuing association lists think they can be treat any different. If you can't afford to Live in London...GET OUT!!
- Paul, London, 01/09/2010 11:54
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