Current homeowners may be priced out of estate
1:29pm Thursday 20th July 2006 in London News By Kay Murray
Some homeowners living on the Grahame Park estate are to be forced to sell their homes to Barnet Council as part of the estate's redevelopment.
But the council has conceded that the amount of money the homeowners will receive for their properties may not be enough to buy one of the new homes on the estate.
In a report to be discussed by cabinet members on Monday, the council outlines plans to issue a Compulsory Purchase Order (CPO) on the first part of the redevelopment, buying back the properties of homeowners who bought their council houses at a discount market value, as part of the right to buy' (RTB) scheme. This will mean that homeowners who do not wish to leave the area will have to either move into a new property on the estate, with the resulting larger mortgage; buy one of the remaining 17 council houses on the estate, which the council says may also involve a price hike; take up a shared ownership, which would mean residents would no longer own all of their property; or hope the council can find another resident in a property of similar value who wants to move out.
By law, under the CPO, the council will have to give qualifying leaseholders the full value of their homes with an additional ten per cent on top of this and money to cover their move.
But the council report into the regeneration project admits: "One of the greatest difficulties facing those existing homeowners, whose homes are due for demolition, but who want to remain in the area for reasons such as employment and children's schooling is the substantial value difference between their existing home and the new homes."
Councillor Jim Tierney, Labour's planning spokesman, has criticised the council's report. "To me it's not a choice when the council is saying you have to pay extra if you want to stay in the area because of jobs, family and schools, and the alternative is to move away," he said. "I thought regeneration was meant to be first and foremost about improving the lives of existing residents, not creating extra stress and worry."
However, the council believes that the choices it is offering are extensive and generous', and has stated that, along with its development partners, it would be giving homeowners equity' to help them bridge any price gaps and acting as brokers to help them buy and sell their homes.
Councillor Anthony Finn, cabinet member for regeneration and development, said: "The council is giving leaseholders a very generous package which goes well over and above the statutory benchmarks.
"We are working hard to ensure that those who have exercised right to buy' can find somewhere suitable."
