England: Residents wins 60% rent reduction after council ends ‘difficult relationship’ with Mears

17 Aug 2020

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Hundreds of families in temporary accommodation in east London have had their rent reduced by around 60% after a four-year campaign against their corporate social landlord Mears.

England: Residents wins 60% rent reduction after council ends 'difficult relationship' with Mears

Last week, the London Borough of Newham announced that “following a series of management issues” 250 homes in the borough, which were leased out by the local authority to Mears, would be transferred back into council management, effectively ending Mears’ role as a landlord to the tenants.

Every current Mears tenant will now have a homeless assessment and, where the council can establish it has a duty to house, tenants will be offered temporary accommodation by the council. Where it is possible, the council will work with tenants to keep them in their current homes.

Where residents cannot stay in their present home, they will be offered alternative temporary accommodation. If any resident is not eligible for temporary accommodation, the council will offer them support to find a suitable private rented sector home.

The council will carry out the handback of properties in batches, and intend to prioritise cases where the property condition is poor. The council will be beginning this process next month and will be communicating directly with affected residents with details of the next steps.

Mayor Rokhsana Fiaz said: “This marks a real victory for the residents who have had historical issues with the management of the property by Mears, which I have been committed to address from the time I was a councillor in Custom House. Since becoming the Mayor of Newham in May 2018, officers have worked tremendously hard with residents to address these issues, by challenging Mears to meet their responsibilities and now we’ve come up with an acceptable solution which causes minimum disruption for tenants.

“It has been an extremely complicated deal to secure, and I am grateful to the residents who have shown such patience as we worked towards this outcome, which I believe meets our agenda of acceptable housing management provision that meets our standards.”

“The project to end the council’s difficult relationship with Mears is a significant one for residents. I made a manifesto pledge to deliver homes that are fit for human habitation and bringing these properties back under Council management will help us to make good on that promise.”

Over the past four years, the residents have fought under the banner of People’s Empowerment Alliance for Custom House (Peach) for social rent and for repairs completed in a timely manner, arranging protests and hosting street parties while negotiating for the changes with the council.

Currently, the properties are not counted as social housing, however the rents charged by Mears are sub-market. Following negotiation between the council and Mears last summer, the properties are now all let at Local Housing Allowance rates. This negotiation led by the council saved tenants collectively £300,000 per year.

Mayor Fiaz has confirmed that a significantly enhanced landlord offer will be put to the council’s cabinet for approval later this year. The offer would then be presented to residents in a ballot to determine whether the regeneration goes ahead.

Alongside secure tenants, it is proposed that for the first time private rented sector tenants will also benefit from the right to return to a council home or to housing association-owned social housing when the programme is completed. This offer will be for those private rented sector tenants, including those living in Mears properties, who have lived in the Custom House regeneration area for five years or more on the date the landlord offer is published and who have been placed in the area by the council.

Mayor Fiaz said: “There is a significant programme of regeneration taking place in the Canning Town and Custom House area which the council is driving. I pledged when I stepped into office back in May 2018, to initiate a sea-change in the way we work and collaborate with our residents, putting them at the heart of everything we do. The regeneration programme in Custom House is a testament to that promise. Residents are involved every step of the way of our development plans for the area, and are helping us shape the restoration of their neighbourhoods for the benefit of the whole community.

“We propose to replicate this gold standard approach across all our proposed Newham regeneration programmes, including in Canning Town and the Carpenters Estate redevelopment.”

In taking on the role of master developer, the council has the potential to deliver 3,500 homes on council-owned land in Canning Town and Custom House in the next 15 years. In line with the pledge of Mayor Fiaz, it is intended that 50% of these homes will be at social rent levels.

Mayor Fiaz added: “Under my administration, Newham Council will continue to listen to our residents and all sections of the community, including local organisations like Peach.

“I am pleased that we are advancing our ground breaking approach to estate regeneration, which will bring much needed certainty for our private rented sector tenants who have lived in the area for more than five-years and placed there by the council, including tenants currently housed in Mears managed properties.

“The proposed Custom House landlord offer for Private Rented Sector tenants will, subject to cabinet approval, include the right to return to council or housing association-owned social housing in the area being redeveloped once completed. This is an unprecedented offer and reflective of the radical housing delivery ambitions we have for Newham and its people.”

Mears said it had spent £400,000 annually on repairs to the properties, which were condemned for demolition by Newham council. The company said the rent levels in the blocks were set by the council.

Alan Long, executive director of Mears, told The Guardian: “First and foremost, I am deeply saddened that the residents of Customs House have been the victims of political indecision and electoral promises which could not have been delivered. I hope that Newham will now be able to start the much-needed regeneration of the area to develop the homes needed in their borough.

“Whilst we are sad to be leaving our relationship with the tenants, I am thankful that this may be an opportunity for Newham to finally create new homes that the residents of Customs House deserve. Mears believes it has met its contractual obligations to residents and the council over the past nine years and have delivered the best service possible in the circumstances.”

Article Tags:

England: Residents wins 60% rent reduction after council ends ‘difficult relationship’ with Mears

Article Tags:

Hundreds of families in temporary accommodation in east London have had their rent reduced by around 60% after a four-year campaign against their corporate social landlord Mears.

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