Vision Homes Council Housing Takeover - please sign the petition

[madshadow]

Please sign the petition against the stock transfer of 300 council homes to a private developer.

More info at https://www.change.org/p/protect-all-council-housing-estates-stop-vison-homes-take-over/

Berger Group (of property tycoon Bearish Berger) have applied for a stock transfer / long term management of Patmos and Lothian Estates, via Vision Homes Lambeth, their new outpost. They aim to buy almost 300 properties for a total of £7 million - that is £30k per flat (????)
They will have a 35 year management contract, apparently without the right to sell/redevelop, but that might easily change. Main guy running the show is Chris Horn, he was the head of the Elephant & Castle Redevelopment Scheme for years. And we all know what happened there. A lot of residents are rightfully concerned over the future of their homes.

Lambeth seem really pissed off, but they have no control over it - disturbingly, the plan has gained government approval and it will potentially impact numerous houses, roads, and residents— this is a first-ever attempt of a for-profit company to take over council homes in the UK (possibly a pilot project for a new Government scheme)

More info at https://www.change.org/p/protect-all-council-housing-estates-stop-vison-homes-take-over/

 

[CH1]

Please sign the petition against the stock transfer of 300 council homes to a private developer.

More info at Sign the Petition

Berger Group (of property tycoon Bearish Berger) have applied for a stock transfer / long term management of Patmos and Lothian Estates, via Vision Homes Lambeth, their new outpost. They aim to buy almost 300 properties for a total of £7 million - that is £30k per flat (????)
They will have a 35 year management contract, apparently without the right to sell/redevelop, but that might easily change. Main guy running the show is Chris Horn, he was the head of the Elephant & Castle Redevelopment Scheme for years. And we all know what happened there. A lot of residents are rightfully concerned over the future of their homes.

Lambeth seem really pissed off, but they have no control over it - disturbingly, the plan has gained government approval and it will potentially impact numerous houses, roads, and residents— this is a first-ever attempt of a for-profit company to take over council homes in the UK (possibly a pilot project for a new Government scheme)

More info at Sign the Petition

Can you give more information?
I've looked up Vision Homes - there is one in the Birmingham area, a charity - clearly not that one.
And where does Berger Group come into it?
Berger Group ran Brixton Hill Court for many years, although this article seems to suggest the residents successfully challenged that?

Brixton Hill Court wins right to manage after first effort cost £25,000 - Leasehold Knowledge Partnership

The residents of Brixton Hill Court have won their right to manage application after their first attempt saw them looking at legal costs of £42,000, subsequently reduced to around £25,000. The ruling is dated September 27, which means there is still a possibility of the freeholder appealing...

www.leaseholdknowledge.com

Berger Group acquired property post World War II when secure tenants virtually had fixed low rents - and then just sold off the flats as the tenants died off!
Is this what you think will happen to the Patmos Estate?

 

[madshadow]

"Berger Group acquired property post World War II when secure tenants virtually had fixed low rents - and then just sold off the flats as the tenants died off!
Is this what you think will happen to the Patmos Estate?"

I suspect so - as a long term investment, this is an amazing opportunity for them . £10m investment for a stock with current value of £140m... win/win IMO

Vision Homes Lambeth is financed by Berger Group.

Here are a few links:

Vision Homes Lambeth - Home

Local councillors urge Lothian estate residents to reject plans by for-profit, private company to take control of local homes

Private, for-profit company still “unable to provide key information” on plans for takeover of local council homes

https://myattsfieldslabour.files.wordpress.com/2022/11/pacca-letter-november.pdf

PACCA Offer Doc below includes a 30 page proposal + 30 page new tenant lease agreement

Also 2 newsletters attached below from consultants.

 

[Rushy]

I suspect so - as a long term investment, this is an amazing opportunity for them . £10m investment for a stock with current value of £140m... win/win IMO

But are they buying the freeholds? Or a right to management and rental income for 35yrs (essentially something like a 35yr lease which would account for the value difference)?

 

[JimW]

So it turns out "subsidised" council houses are an attractive proposition for a property developer. They really have had to go some to wreck the model.

 

[CH1]

But are they buying the freeholds? Or a right to management and rental income for 35yrs (essentially something like a 35yr lease which would account for the value difference)?

There was documentation on the Mayor of London site - but it was in Part 1 and Part 2. In other words us plebs (not perhaps you!) have right to read about the Mayor's Office's view on Part 1 - but not on Part 2 (because of commercial confidentiality).
Whilst developers, planners and bureaucrats use part 2 - commercially sensitive - as a means to avoid scrutiny how can we ever get to the truth?

 

[Rushy]

There was documentation on the Mayor of London site - but it was in Part 1 and Part 2. In other words us plebs (not perhaps you!) have right to read about the Mayor's Office's view on Part 1 - but not on Part 2 (because of commercial confidentiality).
Whilst developers, planners and bureaucrats use part 2 - commercially sensitive - as a means to avoid scrutiny how can we ever get to the truth?

My point arises from reading the first post and one or two of the links. Why would a freeholder have a 35 year management contract with themselves?

There are other examples of complicated setups. Brockwell Court is largely council flats. The freehold is owned by Lambeth but subject to a long lease with Jacksall(?) and managed by JS Estates. Might not be dissimilar?

 

[madshadow]

But are they buying the freeholds? Or a right to management and rental income for 35yrs (essentially something like a 35yr lease which would account for the value difference)?

Page 3 from PACCA offer document:
"The Housing (Right to Transfer from a Local Authority Landlord) (England) Regulations 2013 allow any group of council tenants that can demonstrate they are representative to serve a legal notice on their council to compel a transfer of ownership to another landlord subject to regulatory conditions."

I have been told that one of the regulatory conditions will be that Vison Homes will have mandatory term of 35 years of social housing management before they gain right to sell/redevelop. (I can not say for certain, but some of this was mentioned in meetings...possibly this could be a rumour, maybe the condition will be to run it as a social housing without set timeframe / forever). But, their strategy could easily be to change/remove this condition at a later stage, once they gain the ownership. Good lobbyists can do wonders these days...

The management will be overseen by the UK Housing Authority.

There have been numerous examples od stock transfers between councils and housing co-ops, associations, public developers, etc... but never with "for profit" organisations.