Hackney rent campaigners slam London Mayor’s ‘populist’ stance on housing

Woodberry Down housing development in Hackney. Photo: © Louise Thomson (Creative Commons)

Hackney housing campaigners have slammed London Mayor Boris Johnson for mixed messages on housing policy.

Mayor Johnson has advocated higher rates of council tax on empty homes – a move which many housing campaigners support.

In contrast, his attempt to woo foreign investors at a property conference in March has earned the ire of local housing campaign group, Digs, which represents Hackney renters.

Criticising the London Mayor, a spokesperson for Digs said: “Boris Johnson is advocating for the populist move to tax empty homes with one hand and with the other, encouraging foreign investment to swamp London and push up property and rent prices.

“In Hackney we’ve seen some of the most appalling examples of what happens when housing policies benefit wealthy investors rather than ordinary people.”

“In March Boris was rubbing shoulders with global developers at the world’s largest real estate fair [MIPIM], where public land, much needed for affordable housing is flogged off to the highest bidder.

Digs supports the policy of higher tax on empty homes, claiming it was “long overdue” but attacked the way renting procedures are dealt with.

The spokesperson added: “If these home owners are going to be encouraged to rent out properties under the current system, more needs to be done to stem the massive siphoning of money from tenants to landlords.

“That explains in part why London is one of the most unequal cities in the world. We need urgent action to bring down rents and properly regulate landlords and letting agents operating outside the law.

“Renters put up with it out of desperation; rip off rents, deposits and fees not to mention discrimination from letting agents mean they have nowhere else to go.”

On his Ask Boris Johnson show on LBC radio, Mr Johnson said: “What is certainly not acceptable is people buying homes as assets and then keeping them empty in Kensington and Chelsea or Westminster or wherever as a sort of bank balance in the sky.

“That is no good. What we are saying to councils, who have powers to impose punitive council taxes on such people, is do so. Whack up the council tax.

“It would be an important revenue stream for councils. I think after a while [owners] would care. [They] would think, ‘I’m going to make sure somebody can make use of that dwelling’.”

The London Mayor’s proposal would result in an increase in Hackney’s housing supply by encouraging owners to consider renting out their empty properties or face substantial tax rates.

Current legislation allows councils to charge a maximum of just 150% council tax on properties that have been left empty for two years.

Hackney Council confirmed that it charges the maximum 150% rate on 350 homes in the borough.

What councils can do in addition when they are already imposing the maximum 150% rate is unclear.