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 News Stories

Yesterday, 15:04
The fancy dress dodgeball competition is set to come to Finsbury Park next weekend.

The UK’s biggest fancy dress dodgeball festival will arrive in Finsbury Park for the first time next weekend.

Yesterday, 15:03
Jeremy Corbyn.

A disposable coffee cup used by Jeremy Corbyn as sold in an online auction for £51.

Yesterday, 13:00
There will be no steins in Caledonian Park next month

Oktoberfest is not coming to Islington.

Yesterday, 07:00
Arina

Demystifying the process of growing companies securing funding from investors and lenders is the aim of the first event of its kind in the UK.

Most read news

Competitions

Shop till you drop!

Home to top name brands at great prices, TK Maxx is more like a treasure hunt than a shop. Perfect for grabbing a bargain or some hidden gems, you arm yourself with a trolley and go wild.

Scones, jam and a cup of Earl Grey anyone?

Luxury boutique hotel Flemings Mayfair has recently launched The Drawing Room, London’s most stylish location for afternoon tea.

Digital Edition

Image
Read the Islington Gazette e-edition today E-edition
Family Notices 24


Our trusted business finder