Forum Topic

Wandsworth's 'Shameful' Decision on Battersea Development

Could someone explain what exactly is shameful about this decision in particular rather than the way housing is managed generally.These 'affordable' units that people are getting upset about are going to be sold or rented at a 40% discount to the market level. Given the average price and rent of flats in this development these units could only become the homes of people who earn well above average incomes. So we are currently effectively subsidising the accommodation of the relatively well off - isn't this the scandal here.The only sustainable way to stop London house prices and rents spiralling ever upwards is match supply and demand and that means building as many homes as possible. The 4,200 homes that will be created as a result of this development will do much to put a lid on the market but without them the property shortage would be more acute.Ultimately there is no such thing as an 'unaffordable' home because people will live in these properties. Although they will be for people on higher incomes many of the people moving in to them will be moving out of cheaper properties creating more availability and reducing pressure on prices and rents.As far as the borough is concerned these new homes will all be paying Council Tax and the revenue can be used by the Council on things like social care and be more effectively targeted at the needy.What seems to me shameful here is how every property development is politicised by both parties pretending that our system of 'affordable' housing in some way benefits the poor. It does not.

David Parker ● 2859d5 Comments

There is plenty of building going on at the moment but that is for projects which were started quite some time ago and too much has been invested in already. After that there is going to be a big gap. Lots of projects are being delayed, mothballed or postponed. In about 18 months we'll fall off a cliff in terms of construction activity. At this point the problem will not be that enough affordable homes are being built but that no homes are being built. The Mayor won't want to abandon his BS affordability target but it will get to the point where he will be begging the developers to start projects. 

Peter Higgins ● 2439d

The problem going forward is not whether enough so-called affordable flats will be built but whether any flats will be built at all. The government's policy after the financial crisis was to restrict mortgages to 'protect' the banks but to encourage them to lend to developers. This meant that the two main sources of buyers were domestic buy-to-letters and foreign investors. Perversely the government effectively switched off demand from buy to let by changing their tax treatment just as Brexit and currency uncertainty discouraged buyers. Now most units in any development are unsellable — the only buyers are those wealthy enough to get a mortgage in the currently very restricted market which means that in a lot of new developments only the penthouse and the units with a riverside development sell. The last decade represents a missed opportunity — conditions were good for housing but we deliberately suppressed the number of homes built by piling all sorts of extra taxes on the sector including the obligation to provide these bogus affordable units and section 106 payments and community infrastructure levies. The net result has been that prices stayed high, too few homes were built and homelessness rose. Now we are entering much more difficult economic times even if the insanity of Brexit is unwound and the chances of the shortfall in units being made up is minimal. The units in the new Battersea development will represent a very bad investment if they can even persuade people to buy them.

Barry Elms ● 2447d

One reason this has probably not received much attention is the way posts are ordered.  I have not seen this one before.  My concern about the 40% discount is that it is abused.  Many years ago the houses opposite me (built by the old GLC) were put up for sale by Wandsworth Council (the Tory one).  Wandsworth residents could get a 30% discount.  A man rang on my doorbell and asked if he could use my address for correspondence with Wandsworth so that he could claim the discount.  I, of course, refused but was so shocked I didn't take his details.  He, or someone like him, bought one of the houses and then rented it out for 5 years, selling it after 5 years so that he didn't have to pay back the discount.  So, out of our council taxes, this man made a huge profit.Unfortunately, it is this sort of corruption which the current council encourages, rather than housing people in genuine need.

Jane Eades ● 2579d

I note this post didn't receive much attention so evidently people aren't unduly bothered. What is shameful I think is the whole approach to planning in Wandsworth that has given rise to this "Weinstein-o -rama of ill planned luxury horndog high rises .."

Lynne McNulty ● 2684d

I think what you say is correct. Also the way the 'affordable' units are given out can be very unfair and tend to mean that they exclusively end up in the hands of people who are quite well off. Proof of income requirements make it difficult for people who work freelance or are self-employed to get these types of properties.

Carmel Cunningham ● 2831d