Ahead of sell-off - Social housing group Peabody said to be in talks for Crown Estate

Published: 08 October 2010
by DAN CARRIER

RUMOURS that social housing group Peabody are locked in talks with the Crown Estate over buying hundreds of homes in Pimlico have emerged as secret discussions on a multi-million pound sale near their end.

While a spokesman for Peabody would not confirm or deny they were the buyers, who the Crown Estate have so far kept confidential, a source at the group told the West End Extra they had been looking to acquire the Crown Estate properties.

The Crown – Britain’s biggest landowner – has been touting round affordable homes they own in Westminster for two years.

Now they have chosen a preferred buyer and are currently locked in talks with them. 

The Crown have refused to reveal the potential new owners’ identity until talks are at a more advanced stage, and when quizzed on rumours said: “We do not comment on speculation.” 

They added they would reveal the buyers next week.

Thousands of tenants in the Millbank estate will be affected by the changes.

A tenants’ leader said: “They have broken a strong of promises, and we just can’t understand why they are being so secretive about their plans. It’s our homes they are playing with and we just do not understand why they have treated us so badly.”

The tenants have fought a ferocious campaign against the sell-offs and unanimously dismissed the plans when asked for their views. 

However, the secret two-year plan by the Crown has advanced in spite of opposition to reach a point where they are thrashing out the details of the sale.

Chief executive Roger Bright is under pressure to give guarantees the Crown can legally offer to their tenants that their rents will not be increased and the houses, which provide flats for nurses, teachers, firefighters and pensioners, will continue to be let at affordable rents.

Frank Dobson, Labour MP for Holborn and St Pancras, is scrutinising the Crown’s actions in Regent’s Park.

He said: “The question that needs to be answered is if they do not think it is making enough profit for them, why would anyone, be it a private landlord, a property developer, or a registered social landlord, spend millions of pounds on the homes when the income is going to be exactly the same?”

A Crown spokesman said: “Our discussions with the prospective purchaser are progressing well and next week we will be in a position to share their name and will also be able to begin the second round of consultation.

“We understand the ongoing uncertainty for residents can be unsettling and I would like to assure you that we are working as quickly as possible to get to a position with the prospective purchaser which enables us to release their name and start the consultation.”