October 5, 2022

Worth of proper to purchase in London hits £3.415bn

The evaluation of historic Proper to Purchase knowledge by Benham and Reeves exhibits that, since 2012-13, 23,061 council properties have been bought to tenants by their respective native councils.

Highest complete Proper to Purchase gross sales

The very best variety of council owned properties have been bought in Barking and Dagenham, the place Proper to Purchase gross sales complete 1,883 during the last decade.

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Greenwich has additionally seen an analogous quantity bought at 1,867, adopted by Newham (1,716), Southwark (1,702) and Tower Hamlets (1,187)

Highest proportion of complete council properties bought

Throughout the capital as an entire, the entire variety of Proper to Purchase gross sales accounts for five.6% of all native authority owned properties.

Nevertheless, within the Metropolis of London, whereas simply 62 properties have bought by way of Proper to Purchase, this determine accounts for 14.4% of all council properties situated there.

Newham once more ranks excessive, with Proper to Purchase seeing 10.2% of council owned properties bought, as does Barking and Dagenham (9.8%) and Tower Hamlets (9.5%).

Redbridge additionally makes the highest 5, with 9.4% of complete council properties within the borough being bought by way of Proper to Purchase within the final decade.

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Highest Proper to Purchase bought worth

The market worth of properties bought by way of Proper to Purchase throughout the London market has hit an enormous £3.415bn within the final 10 years.

In the case of the best bought worth, it’s the London Borough of Southwark that sits high. Proper to Purchase gross sales have generated 3254.5m since 2012, with Greenwich (£223.5m), Barking and Dagenham (£222.3m) and Newham (£201.7m) once more making the highest 5.

Islington additionally ranks as one of many boroughs to see the best bought worth of Proper to Purchase properties to council tenants, producing £198m since 2012.

Director of Benham and Reeves, Marc von Grundherr stated, “Proper to Purchase might have been an extremely profitable initiative relating to giving council tenants the power to climb the ladder and plenty of have seized the chance to take action within the final ten years.

“In fact, in doing so these native authorities have primarily shot themselves within the foot, because it severely reduces the social housing inventory out there to them to fulfill the massive demand from those that are nonetheless in determined want of it.

“The irony is, that it then prices these councils extra, as they should depend on renting from the personal sector at a better value to deal with these in want.

“In consequence, we’ve now seen some councils begin to reverse this pattern and reclaim previously council owned properties from their house owners. Which does beg the query that, having made some fairly sizeable sums from promoting within the first place, why London’s native authorities haven’t invested appropriately within the provision of recent properties for council tenants?”

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