There’s been some hoo–haa recently about Emily Thornberry MP buying up former housing association property at auction. Interestingly, she denies it is an investment, claiming the property will be used to, as Ms Thornberry puts it, “provide cheap and cheerful accommodation for some young people,” while the Islington Tribune article that appears in suggests it will be used for renting out to her “Parliamentary aides”. Does this mean she will be subsidising staff income by providing subsidised property? If so, my reading of the PPERA 2000 is that she will need to declare it as a donation in kind, either to Islington Labour or her Parliamentary Office.
All rather cheeky for someone who has adopted such a high moral tone about Islington’s housing crisis. But the fact is, Labour’s muddle over social housing in Islington doesn’t end there.
The latest episode in the council’s decision to sell off its commercial property portfolio is that apparently 50% of existing residents have either declined to buy their property, or failed to stump up the cash in time. I can see why these shop owners are nervous; Structadene’s bid does indeed appear to have been over the odds and they can expect to see major rent increases. I could bore you for hours about how the existing system gives rich landholders enormous benefits by enabling them to speculatively drive up the price of property and effectively squeeze the little guy out and increasing their property portfolio still further (in fact, if you are a long-term reader, I probably have). Perhaps Structadene will be model landlords and that the shop keepers who missed out were simply badly advised. Either way, the council has a legal obligation to sell to the highest bidder (courtesy: HM Labour Government), and will be using a substantial proportion of the money raised from this sale to invest in social housing.
Given that Structadene’s bid was so high, you would have thought Labour would be delighted. After all, back in April they were demanding that the District Auditor should investigate claims that the council was flogging these properties “on the cheap“. In the event, the money raised from this sale is Â£69m – Â£9m more than the optimistic forecasts. Now they’ve done a huge, vaulting, 180-degree U-turn and are claiming to be the resident’s new best friends. It really does beggar belief.