Tuesday, August 25, 2009

Church Commissioners requested to help former tenants

Residents living in the Octavia Hill estate in south London have complained that the Church Commissioners have abandoned the founder’s vision of providing affordable housing.

The issue of the Octavia Hill estate came to prominence in the mid-1990s ahead of the sale of Southwark's Octavia Hill Estates by the Church Commissioners to Grainger Geninvest.

This was a co-partnership between the Grainger Trust, a leading private residential investor, and the Genesis Housing Group, one of the country's largest registered social landlords.

But the issue has reignited with renewed criticism of the 'money-making venture', which is said to have left residents on assured tenancies with a rent increase of over 7.5 per cant.

In a three-page letter addressed to the Church Commissioners, Octavia tenant Brendan Mooney explains how "the Church Commissioners chose to maximise clergy pensions at the expense of residents" and left assured tenants inflation-busting increases which appear to be the beginning of the end for the residents of Octavia".

Mr Mooney explains that two-and-a-half years after the sale of Octavia Estates, 'Assured residents' rents are considerably higher than fair rents tenants'. A spokesman for the Commissioners said: "There are a number of Church-based social housing providers but the Commissioners are not one of them. They are not and have never been a housing charity.

“The Church Commissioners have fiduciary duties under charity law, and placing restrictions on how these estates might be managed by the purchasers - beyond any legally binding historic conditions attached to the properties - would have led to a sale at significant undervalue."

In Mr. Mooney's letter he said “This is a far cry from Octavia Hill's vision for these properties to be used as long-term affordable housing for ordinary working people.”

Mr Mooney, an NHS palliative care family worker, expressed regret that residents, who are on average incomes, and are mostly key workers, will be forced to relocate because of the high rent prices.

A spokesman for the Church Commissioners said: "The Commissioners are neither registered social landlords nor housing specialists. We were of course aware throughout the sale process that we were dealing with people's homes rather than simply 'investment land', and recognised the considerable uncertainty that a sale of this nature entailed.

“We remain of the opinion that the sale was a positive outcome both for residents (because the new owners are likely to be in a better position to make the necessary investment in the properties in the longer term) and for our ability to provide sustained financial support for the Church's mission throughout the country."

In his letter, Mr Mooney stated that Octavia Hill residents have been thrown into a "precarious future by not choosing a landlord who would have guaranteed to keep our homes affordable. Although a few prelates and clergy raised their voices against this sale, there was no great effort made by Synod to hold the Assets Commission accountable for this sale.”

Mr Mooney concludes his letter by asking the Church Commissioners and the Church of England to challenge the new landlords on behalf of the tenants about the rent increases.

A spokesman for the Commissioners said: "We sought to keep residents and other stakeholders informed at key points in the process, and to listen to their concerns, providing reassurance that the sale did not affect existing tenancy arrangements and responding to concerns as best we could. Existing tenancy agreements remained in place after the freeholds were sold, but the management of the estates is a matter for the new owners."
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