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West End Extra - by JAMIE WELHAM
Published: 9 January 2009
 
PORTER HOMES BOUGHT BACK

Tories spend millions on properties sold off by disgraced leader

COUNCIL houses sold off in the 1980s in the “Homes for Votes” scandal are being bought back at 10 times the price to try and bolster the borough’s meagre social housing stock.
Housing chiefs have spent more than £14million on 60 former council flats, including eight flats sold by disgraced former Conservative leader Shirley Porter, as part of what has become regarded as the biggest local government corruption scandal in history.
Under the council’s Settled Homes scheme, the properties will be used to house homeless families currently living in temporary accommodation, rather than sending them out of Westminster to expensive private landlords.
In a borough crippled by a chronic shortage of affordable housing, the scheme has been applauded by opposition leaders, but the irony of the situation has not gone unnoticed.
Councillor Paul Dimoldenberg, leader of the labour group, said: “The Conservatives’ housing policy is a complete shambles.
“After years of aggressively championing the sale of council houses at knock-down prices, including the illegal ‘Homes for Votes’ policy, the Conservatives have created a severe shortage of affordable homes for rent and are now being forced to buy back council flats for 10 times more than they sold them for.”
There are currently 8,369 people waiting to be housed by the council, with an average wait ?of six years for a family of four with two children.
The council claims the 200 houses that will eventually be bought from leaseholders – costing on average £250,000 – offer good value for money and will save taxpayers £500,000 a year.
Many of the two and three-bedroom flats were sold for less than £25,000 in the 1980s under the Right to Buy scheme. The illegal designated sales policy saw council houses sold to potential Tory voters in marginal wards, with Labour voters moved to asbestos-ridden flats in safe Labour wards.
Cabinet member for housing Councillor Philippa Roe said: “We strongly disagree with the claims that have been made about Westminster’s housing policy.
“The Settled Homes scheme, which is approved and part-funded by government, will provide up to 200 much-needed homes, the majority of which will be family sized, for homeless households.
“In the last 30 years, house prices have shot up and what we are paying for these properties reflects this increase and their current market value.
“In fact, these family sized properties – of which there is a chronic shortage of in Westminster – represent good value for money in the long-term compared to the costs of paying for accommodation in the private sector. Furthermore, at the end of a four-year period tenants will have the option to make these properties their permanent home through an assured tenancy.”
There are currently around 26,000 social houses available for rent in the borough.
In May last year the council announced that 500 council houses would be built on brownfield sites.
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