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Pressure rises on Westbrook Partners to scrap New Era estate evictions plan Pressure rises on Westbrook Partners to scrap New Era estate evictions plan
(about 4 hours later)
Labour has called on US investment company Westbrook Partners to scrap its plans to evict 93 families from the New Era Estate in east London and instead sell the homes to a social landlord who can keep the community together.Labour has called on US investment company Westbrook Partners to scrap its plans to evict 93 families from the New Era Estate in east London and instead sell the homes to a social landlord who can keep the community together.
Speaking in advance of a major protest by residents and their supporters at the firm’s offices in Mayfair on Monday afternoon, Sadiq Khan, the shadow justice secretary and shadow minister for London, told the Guardian: “The shameful New Era saga embodies everything that is wrong with London’s broken housing market.”Speaking in advance of a major protest by residents and their supporters at the firm’s offices in Mayfair on Monday afternoon, Sadiq Khan, the shadow justice secretary and shadow minister for London, told the Guardian: “The shameful New Era saga embodies everything that is wrong with London’s broken housing market.”
Westbrook Partners bought the Hoxton estate in March and transferred its ownership to an offshore company in the Channel Islands tax haven of Jersey. The firm is understood to be planning to evict the tenants, refurbish the estate and re-let the flats at full market value – which in some cases could be three times higher than current rents. Westbrook has only made assurances that rents will not go up before the turn of the year.Westbrook Partners bought the Hoxton estate in March and transferred its ownership to an offshore company in the Channel Islands tax haven of Jersey. The firm is understood to be planning to evict the tenants, refurbish the estate and re-let the flats at full market value – which in some cases could be three times higher than current rents. Westbrook has only made assurances that rents will not go up before the turn of the year.
“Ordinary Londoners are suffering, with their homes ripped from underneath them and their lives and families pulled apart, just so international investors can make a quick buck, with no regard to the community they are destroying,” said Khan. “If Westbrook won’t provide affordable housing to families on the estate they should sell to a social landlord who can keep the community together.”“Ordinary Londoners are suffering, with their homes ripped from underneath them and their lives and families pulled apart, just so international investors can make a quick buck, with no regard to the community they are destroying,” said Khan. “If Westbrook won’t provide affordable housing to families on the estate they should sell to a social landlord who can keep the community together.”
Hackney council believes Westbrook does not want a long-term commitment to the estate which has led to speculation it may sell within a few years once its value has increased by ratcheting up rents.Hackney council believes Westbrook does not want a long-term commitment to the estate which has led to speculation it may sell within a few years once its value has increased by ratcheting up rents.
Hundreds of people are expected to attend the protest in Berkeley Square which is being organised by residents and their families. Russell Brand, the comedian and campaigner who has thrown his weight behind the residents’ campaign, is expected to speak alongside resident leaders including single mother Lindsay Garrett. Residents and their backers will then march from Westbrook’s offices to Downing Street where they will hand in a 292,000 signature petition to the prime minister’s office which calls for the owners to keep rents at an affordable level so existing tenants can afford to stay. On Sunday night, the new owners wrote to all residents stating “there will be no changes to the tenancy agreements and no increase in rents during the first half of 2015”. The letter, which was hand delivered, said: “to help us work with you more closely we will also be appointing a dedicated tenant liaison officer … We understand the accusations about us and our plans have caused concern and distress amongst tenants, so we hope that these commitments provide some further reassurance.”
Lindsay Garrett, chair of the New Era residents association, said the letter only deferred the eviction plans. “Westbrook are hoping this will die down and we are going to go away but we won’t because we haven’t got anywhere else to go,” she said.
Hundreds of people are expected to attend the protest in Berkeley Square which is being organised by residents and their families. Russell Brand, the comedian and campaigner who has thrown his weight behind the residents’ campaign, is expected to speak alongside resident leaders including Garrett. Residents and their backers will then march from Westbrook’s offices to Downing Street where they will hand in a 292,000 signature petition to the prime minister’s office which calls for the owners to keep rents at an affordable level so existing tenants can afford to stay.
Support for the campaign to defend New Era estate has been widening in recent days and backers include the children’s author Michael Rosen, and the comedian Mark Thomas.Support for the campaign to defend New Era estate has been widening in recent days and backers include the children’s author Michael Rosen, and the comedian Mark Thomas.
The protest comes amid continuing negotiations between senior London politicians and Westbrook’s managing principal, Mark Donnor. Over the last ten days, the firm has held meetings with Richard Blakeway, the deputy mayor for housing, Meg Hillier, the tenants’ Labour MP, Jules Pipe, the elected mayor of Hackney, and Philip Glanville, the cabinet member for housing at Hackney.The protest comes amid continuing negotiations between senior London politicians and Westbrook’s managing principal, Mark Donnor. Over the last ten days, the firm has held meetings with Richard Blakeway, the deputy mayor for housing, Meg Hillier, the tenants’ Labour MP, Jules Pipe, the elected mayor of Hackney, and Philip Glanville, the cabinet member for housing at Hackney.
Hackney is proposing that Westbrook sells the homes to a social-housing organisation, but in the absence of clear powers to force the private company to act, the negotiations are understood to be delicate.Hackney is proposing that Westbrook sells the homes to a social-housing organisation, but in the absence of clear powers to force the private company to act, the negotiations are understood to be delicate.
Pressure is now growing on the London mayor Boris Johnson. Last week, Bill de Blasio, mayor of New York, where Westbrook is based, spoke out against the firm.Pressure is now growing on the London mayor Boris Johnson. Last week, Bill de Blasio, mayor of New York, where Westbrook is based, spoke out against the firm.
“London is experiencing what New York City used to experience,” he said in an interview with Russell Brand on his Trews show. “Our city government found a huge number of violations of our law by Westbrook for unfair treatment of tenants and attempts to interfere with tenants who organised for their own rights. I can’t tell you that what you are experiencing is news to us ... Sometimes it is fair to say there is a limit to the amount of profit you should make, because you shouldn’t want to dislocate people from their lives.”“London is experiencing what New York City used to experience,” he said in an interview with Russell Brand on his Trews show. “Our city government found a huge number of violations of our law by Westbrook for unfair treatment of tenants and attempts to interfere with tenants who organised for their own rights. I can’t tell you that what you are experiencing is news to us ... Sometimes it is fair to say there is a limit to the amount of profit you should make, because you shouldn’t want to dislocate people from their lives.”
In April, Eric Schneiderman, the state attorney general, ordered Westbrook and other private equity owners of series of housing complexes to payback $1m in rent to 1,700 tenants and make urgent repairs. It followed residents’ complaints about conditions at the blocks and allegations that the owners’ management company, Colonial Management, blocked tenants and housing activists from organising and used intimidation tactics to break up peaceful meetings.In April, Eric Schneiderman, the state attorney general, ordered Westbrook and other private equity owners of series of housing complexes to payback $1m in rent to 1,700 tenants and make urgent repairs. It followed residents’ complaints about conditions at the blocks and allegations that the owners’ management company, Colonial Management, blocked tenants and housing activists from organising and used intimidation tactics to break up peaceful meetings.
There is no suggestion of similar problems at the New Era estate which Westbrook bought in March.There is no suggestion of similar problems at the New Era estate which Westbrook bought in March.
In a statement issued last week Westbrook said: “We take our responsibility as a landlord very seriously and are committed to working closely with our tenants throughout this period ... We are committed to engaging in constructive dialogue with tenants, their representatives and interested local parties.”In a statement issued last week Westbrook said: “We take our responsibility as a landlord very seriously and are committed to working closely with our tenants throughout this period ... We are committed to engaging in constructive dialogue with tenants, their representatives and interested local parties.”
It said it will not change any tenancy agreements or rent levels until 2015 and that this will only be done after meetings with residents which it wants to conduct on an individual basis.It said it will not change any tenancy agreements or rent levels until 2015 and that this will only be done after meetings with residents which it wants to conduct on an individual basis.
Khan, who is thought likely to bid for the Labour candidacy for London mayor, said the situation showed “we need more affordability and stability in rented accommodation and a national register of landlords so councils can run licensing schemes which would stop this sort of abuse”.Khan, who is thought likely to bid for the Labour candidacy for London mayor, said the situation showed “we need more affordability and stability in rented accommodation and a national register of landlords so councils can run licensing schemes which would stop this sort of abuse”.
Blakeway and Johnson are currently on a trade mission to Malaysia, Singapore and Indonesia seeking to boost foreign investment in London.Blakeway and Johnson are currently on a trade mission to Malaysia, Singapore and Indonesia seeking to boost foreign investment in London.