Crown Estate sell-off not inevitable, London Assembly hears

9 JUNE 2010

During questioning by the London Assembly yesterday, the Crown Estate insisted they will not sell four residential estates if no buyer comes forward that will agree to meet the conditions[1] set to protect the rights of tenants and the future of the estates as key worker housing.

Sir Stuart Hampson, Chairman of the Crown Estate, told the Assembly’s Planning and Housing Committee that the Board is committed to ensuring current arrangements for tenants of the Cumberland Market, Lee Green, Millbank and Victoria Park estates continue. 

However, Committee Members raised a number of concerns during a lively public session, about the lack of accountability of the Crown Estate, the rationale for the sale and the implications for tenancies on the estates in the longer-term.

Of particular concern is the robustness of guarantees made to tenants that the conditions will be adhered to in the future, and the potential gradual loss of intermediate rented or key worker homes if a new buyer is not required to guarantee that 100 per cent of new lettings are made available on these terms.

Chair of the Planning and Housing Committee, Nicky Gavron AM, said:

“Until yesterday it seemed inevitable that these estates that are home to more than 1,400 families, predominantly key workers, would be sold amid residents’ fears of threats to their security of tenure and future rent rises.

“We will be holding the Crown Estate to their promises that if they cannot find a suitable buyer the sale will not go ahead.  And if the sale does fall through we will press the Crown Estate to take the estates off the market and continue to manage the properties as sub-market affordable housing in perpetuity.”

Sir Stuart told the Committee that the decision to sell[2] the freehold of the four estates is a business decision; the urban residential properties do not provide the financial return the Crown Estate is seeking.  He added that the Act of Parliament under which the Estate operates does not place it under any duty to provide key worker housing in London, but does require it to enhance the return on its assets for the Treasury.

Notes for Editors:

  1. The Crown Estate gave the Committee the assurance that any proposed purchaser must pass a rigorous quality test of their track record and suitability in managing housing of this type.  Further conditions include provision of key worker rented housing on the estates in the future with a continuation of the current level of new letting to key workers.  Employers such as local hospitals who currently refer key workers as prospective tenants should continue to be able to do this and there would be legal protections for existing tenants’ rights on how rents are set and security of tenure.
  2. The Crown Estate has decided to sell the freeholds of Cumberland Market, Lee Green, Millbank and Victoria Park, and has commenced a further period of consultation with tenants as well as marketing the estates to potential buyers subject to a set of conditions (see 1 above).  
  3. View the webcast of yesterday’s Committee hearing.
  4. Membership of the Planning and Housing Committee.  Relevant constituency Assembly Members also present at the session were John Biggs AM, Brian Coleman AM and Kit Malthouse AM.
  5. Full agenda papers for the meeting on 8 June are available here.
  6. The Chair of the Planning and Housing Committee, Nicky Gavron AM, is available for interview.  See contact details below.
  7. As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.

For media enquiries, please contact Dana Gavin on 020 7983 4603/5769.  For out of hours media enquiries, call 020 7983 4000 and ask for the London Assembly duty press officer.  Non-media enquiries should be directed to the Public Liaison Unit on 020 7983 4100.