Winner takes it all

The London property market while considered a boom for one group of people is a crisis for many others.

The day after the Tories secured a majority in the general election sales of luxury properties in the capital soared with more than ÂŁ100m of central London property sold in a 24-hour buying surge.

Investors and buyers perturbed by Labour’s proposed mansion tax held off purchases in anticipation.  But with Cameron re-elected and the tax loophole for non-doms maintained, renewed interest from wealthy buyers saw shares in estate agents Foxtons shoot up by 13 per cent.

Forced out

But the other side of the story is tragic. Londoner’s on low incomes are being forced out of the capital as wealthy investors buy up land, ‘regenerate’ whole estates and replace real affordable properties with luxury apartments.

A tiny two bedroom ex-council flat in South Kensington has just gone on the market for ÂŁ1.15m. The property in a 50s block is surrounded by council tenants.

It was bought by developer Patrick Dougherty for ÂŁ660,000 and has been completely revamped by his design firm Ivar.

Vito Pisano, a resident who lives on the floor below said, “None of the residents here could afford that sort of money or anywhere close.”

According to figures from Kensington and Chelsea council, 70 per cent of properties on Ashburn Place in the borough are no longer classed as a main home.

Estate agents have reported a surge of foreign investment in the capitals property market following Cameron’s’ re-election.

Truly shameful

“It is truly shameful that working London families are being driven from their homes by rocketing rents and the redevelopment of council estates, for the filthy rich to treat London as a weekend getaway,” said Steve Turner, Unite assistant general secretary.

Knightsbridge bistro Racine closed earlier this year because “the non-doms have bought up large chunks of central London and then only live here for certain months of the year,” reported restaurateur Henry Harris.

Around one in 10 properties in Kensington and Chelsea are now classed as second homes.

Meanwhile in Kingston-upon-Thames £400 per calendar month will only get you a single bed in the corner of a stranger’s kitchen according to property website Spareroom.

The advert, now taken down, read – ‘Single bed to rent in kitchen/lounge area. All bills included. Please notice this is not a room. It is a single bed in a shared kitchen. You can use your own entrance, the garden, it you wish.’

“This is just another example of people being forced to live in shocking standards thanks to the housing crisis. Unless Cameron acknowledges the desperate need for more truly affordable housing I fear this isn’t the worst we will see,” added Steve.

In Tower Hamlets as many as 23 per cent of families live on less than ÂŁ15,000 a year and 53 per cent of children come from families living on unemployment benefit. Yet luxury apartments in the area are now selling for millions.

The area is described as ‘vibrant’ and ‘edgy’ by local estate agents. The reality of this is that one in every two children in Tower Hamlets are growing up in poverty according to the Campaign to End Child Poverty.

Housing regeneration and the relocation of tenants is something rife in almost every London borough. The Summersby estate in Highgate has been earmarked for potential redevelopment.

“We understand that there’s a need to build more housing for London’s expanding population. But knocking down existing housing is no way to resolve that,” said resident Sarah Cope.

“The only way to solve London’s housing crisis is a massive council house building programme and the regulation of landlords with the emphasis on rent controls,” added Steve.