Search

More than £10million raised in 3 months selling off Islington Council house sales - but cash could disappear down ‘black hole’

11:16 27 August 2014

More than £10million has been raised in 3 months from selling Islington Ccouncil properties

More than £10million has been raised in 3 months from selling Islington Ccouncil properties

Anna Bruce

More than £10million has been raised in just three months selling off Islington Council homes - but the lion’s share could disappear into a Government “black hole”.

The sale of 65 properties under the Right To Buy (RTB) scheme between April and June has had town hall tills ringing to the tune of £10.2m – an estimated £22million over the last year.

But RTB rules, which give council tenants the chance to buy their home for £100,000 less than the market value, mean up to 75 per cent of the cash goes back to the Government coffers.

In addition a secret deal between the town hall and Partner for Improvement in Islington (PFI), who manage Islington’s street properties, means the authority have to dish out up to £40,000 every time a PFI property is sold.

Brain Potter, chair of Islington Leaseholders Association, said: “I support RTB as long as the money is ploughed back into much needed housing for the borough.

“But of that £10million at least £7million is going to central government where it disappears into a black hole.

“No one know what happens to it, but it certainly never come back to Islington.

The receipts should stay in the borough

“If we got to keep all that money, they wouldn’t be talking about things like libraries closing.”

Brandon Lewis, housing and planning minister said: “Critics of RTB are enemies of home ownership, and fail to appreciate the wider benefits of helping people move on and up the housing ladder.

“So far, RTB sales have generated over £500 million in receipts to be reinvested in new affordable homes, and council house building starts are now at a 23-year high.

“More council housing was built in London last year than all thirteen years of the last Government.”

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other Islington Gazette visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Islington Gazette staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Islington Gazette account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Latest Islington News Stories

Yesterday, 14:20
Sam Parrington of the Pilion Trust at the exhibition in Caledonian Road on Wednesday. Picture: Andy Commons (andycommonsimages.com)

It isn’t just older people who fall on hard times. James Morris finds out about the sad reality of homeless young people in the capital – and how charities like The Pilion Trust and Project One Zero are working in Islington to give them a creative outlet.

Yesterday, 10:09
Cricket fan: David Pearce (Picture: Ken Mears)

A wheelchair-bound Canonbury pensioner must fork out £450 for a season of matches he cannot attend – or face exclusion from the elite cricket club that runs Lord’s.

Thu, 16:26
Protesters release balloons outside HMP Holloway yesterday (Picture: Jade Jackman)

More than two hundred people lit flares and released balloons outside Holloway Prison in protest against violence towards women in government institutions.

Thu, 11:02
Caledonian ward councillors are calling for HGVs to stop using Copenhagen Street as a shortcut. Picture: Cally Labour

Cement mixing company Cemex has instructed its drivers to comply with the HGV ban in Copenhagen Street, near King’s Cross.

Thu, 08:59
Islington NUT members at a previous demonstration against the academisation plans. Picture: Ken Muller

Islington NUT is holding a public meeting as part of a campaign to defeat the government’s plans for all schools to become academies by 2022.

Wed, 15:51
Islington Boat Club 'Upperdeckers'. Picture: Amanda Corcoran

Islington Boat Club has launched free weekly sessions for over-50s.

Wed, 12:00
Teacher Daire Fitzharris is climbing Mount Everest next year and is preparing by camping on the Brecknock school roof every night this week. Picture: Ken Mears

A good teacher leads by example. Daire Fitzharris, a Year 2 tutor at Brecknock Primary School, realised this as he sought to introduce his pupils to the wonders of camping. So rather than just stand at the front of the class talking about it, he has set them an example – by sleeping on the school’s roof every night this week.

Wed, 09:48
Year nine students from Deptford Green School travelled to Highbury Grove School to understand a different perspective of London. Picture: London Football Journeys

Students from Highbury Grove School met their south London counterparts in a soccer scheme to build bridges between youngsters from different areas of London.

Education and Training

cover

Read the
Education and Training
e-edition today

Read Now

Newsletter Sign Up

Most read news

Competitions

Kindle 7 inch tablet

Are you looking for a brand new gadget to help you stay connected on the go and make that long journey home a bit more entertaining? Look no further. MyOffers is giving you the chance to win 1 of 50 Kindle Fire 7” Display Tablets! That’s 50 times more chances to win, so hurry up and enter our competition today and you could be one of our lucky winners!

Yummy traditional afternoon teas for two

MyOffers is giving you the chance to win 1 of 50 Traditional Afternoon Teas for two at a location of your choice! That’s 50 times more chances to win, so hurry up and enter our competition today and you could be one of our lucky winners!

Digital Edition

cover

Enjoy the
Islington Gazette
e-edition today

Subscribe