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BBC TV ‘Watchdog’ programme, March 14, 2006

14 March 2006

Sale of Octavia Hill Properties, London

Statement from the Church Commissioners

 

The Church Commissioners believe that the sale of these properties is a good outcome for tenants, as the new owners are likely to be in a better place to invest in the properties for the long term.

The new owners will be a 50/50 partnership between social housing landlords the Genesis Housing Group and The Grainger Trust. Pathmeads Housing Association, which is part of the Genesis Group, will manage the properties. Whilst the Church Commissioners are neither registered social landlords nor housing specialists, Pathmeads are both.

We have stressed in all our communications to tenants that the sale is of the freeholds only, and that existing tenancy agreements will remain in place. This was again confirmed in a letter that Pathmeads sent to residents when the sale was announced.

In this letter, Pathmeads stressed that they will manage the homes using best practice housing association policies, including safeguarding tenancies and complying with social housing ethics. They also stated their commitment to improving service and investing in improvements to the internal and external appearance of the properties.

We fully understand that a change of landlord may be a cause for concern to tenants, which is why we have kept all tenants informed of developments throughout the process. We have sent five letters to tenants at key stages of the process, and we set up a dedicated phone number and e-mail address for tenants to ask questions. We also held a meeting with the Chairs of the Residents’ Associations and their elected representatives.

The Church Commissioners have a duty to contribute towards funding the clergy and the good work of the Church. We believe that we have fulfilled this duty, and we have done so in a way that ensures security and investment for the future of the estates. 

 

 

Q&A on the Sale of the Octavia Hill Properties

 

What is the current situation?

Following the successful sale of the freeholds of our properties in Maida Vale, Stoke Newington and part of the Waterloo estate, the Church Commissioners decided in July 2005 to market their remaining residential freehold interests on the Octavia Hill estates in London for sale.

We have kept residents informed throughout the process. We have recently informed residents that we have now exchanged contracts for the sale of the majority of these properties to GraingerGenInvest, a 50/50 partnership between social housing landlords the Genesis Housing Group and The Grainger Trust. Pathmeads Housing Association, which is part of the Genesis Group, will take over the management of the properties. We expect the sale to complete very shortly.

 

What about the provision of social housing?

There are a number of church-based social housing providers, but the Church Commissioners are not, and never have been, a housing charity. Whilst the Church Commissioners are neither registered social landlords nor housing specialists, the new property managers Pathmeads are both.

 

How have you been communicating with residents?

Understanding that change can cause concern, we made a commitment at the outset to keep our residents informed of progress as the sale progressed:

· We have sent six letters since July 2005, providing information when there have been important developments;

· We have provided residents with a direct telephone line to the Church Commissioners and we have encouraged people to write to us by email or post. We have responded to enquiries as quickly as possible.  Throughout the sale process, we were contacted by approximately forty residents;

· We have held meetings with the Chairs of the Residents’ Associations; and

· We have met with political representatives for the areas.

Pathmeads Housing Association recently wrote to residents to introduce themselves and set out their approach to the management of the estates.  They have made a commitment to maintain ongoing communication with tenants.

 

What will be the impact on tenancies?

While it will be for the new owners to determine their own policies, we have stressed to tenants that the sale is of the freeholds of the properties only. Existing tenancy agreements will remain in place. Around 60% of these tenancies benefit from either rent control or security of tenure and, in most cases, both. In addition, the new owners have made public commitments to affordability for existing key worker tenants.

We believe that the sale will be a good outcome for tenants, as the new owners are likely to be in a position to invest in the properties for the long term.

 

What was the rental policy of the Church Commissioners?

Under the Church Commissioners’ management of the properties that are currently being sold, approximately 80% of empty properties that became available on the estates were let at market rates. 

There has also been some misinformation and rumour circulating about GraingerGeninvest’s rental policies in the estates that they recently purchased from the Church Commissioners.  GraingerGeninvest have recently announced that rent increases for the coming year for Assured and Assured Shorthold tenants would match increases recommended by the Rent Officer for Rent Act tenancies. The Rent Officer is independent of both tenants and landlords. The increase recommended by the Rent Officer is 6% per annum over the next two years. Had the Commissioners continued to own the properties, they would have adopted a similar policy

 

Why did the Commissioners decide to sell these properties?

The role of the Church Commissioners is to deliver the best possible long-term returns on all our investments to help fund the work of the Church. We review our investments regularly and this sometimes involves making changes to our portfolio, so that we can maximise the contribution we make to the wider Church. The Commissioners contributed around 18p in the pound towards the cost of the running of the Church of England last year. 

 

Who was Octavia Hill?

Octavia Hill (1838-1912), the well-known 19th century housing reformer, was invited by the Ecclesiastical Commissioners in the 1880s to manage their inner London rented housing estates in accordance with the progressive principles which she had pioneered.  The collection of estates became known as the Octavia Hill estates.  However, the estates have always been in the property investment portfolio of the Commissioners and were not bequeathed to the Church by Octavia Hill.

A woman of great vision and energy, she was also one of the co-founders of the National Trust.

 

 

 

 

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