Islington Tribune - News: The great £6m property sell-off

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Islington Tribune - by ROISIN GADELRAB
Published: 16 November 2007

The great £6m property sell-off

Houses, shops and a homeless centre will be sold by the council to fund social housing

ISLINGTON Council will announce plans to sell more than £6 million of properties next week, the Tribune has learned.
Among the jumble of properties marked for sale are two parades of shops and homes in Old Street, a former community centre in Pine Street, Finsbury, and five garages and a lumber store in Pilgrims Way, Archway.
A homeless reception centre on Holloway Road and a Grade II listed house in Highbury New Park, which was a care home for young asylum seekers until it was closed in September, will also be offloaded.
The plans will be announced at the next meeting of the council’s executive on Thursday.
While some of the properties will be sold for social housing, and Pine Street may be sold to Islington Primary Care Trust, which wants to expand the neighbouring health centre, Old Street and Highbury New Park will be auctioned for private sale.
In response to the news, Labour councillor Phil Kelly said: “When does it stop? They told us after the last sell-off that they had enough capital money to do everything they needed. They expected £45m and it was sold for £69m. We can’t trust anything they say. Why do they need this capital now?”
Speaking of the homeless centre in 429-431 Holloway Road, he added: “Clearly the facilities in the reception centre are not up to standard. But what’s going to happen to homeless people who arrive at the council and need somewhere to stay on that day?
“If it means they are going to be put in bed and breakfasts anywhere else it will make it difficult for them to keep up with the things they need to do to be properly rehoused.”
Cllr Richard Greening said he was happy with the plans as long as the cash went towards social housing.
A report seen by the Tribune reveals that the parades of shops in 92-100 and 104-110 Old Street are expected to fetch at least £2.25m from auction but admits “there will be a resultant loss of £117,000 a year from the foregone rent, adding additional pressure to the Housing Revenue Account”.
But housing chief Terry Stacy defended the plans.
He said: “We have a very adventurous capital programme which we need to fund and we’ve decided that these properties are surplus to our requirements. In the case of Old Street, the capital will be of more benefit than the rent and the tenants are protected by the landlord and tenant act.”
He added: “All the money generated is put back into local services. We want the reception centre to be affordable housing. We have a number of reception centres which are a disgrace and the money generated from the sale will be ring-fenced to go back into the remaining centres.”

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