Million pound price tag slapped on ‘affordable’ shared ownership flat

‘Affordable’: The Cube development on Wenlock Road. Photograph: Google Street View

An ‘affordable’ shared ownership flat in Hackney is on the market for over £1 million.

The three-bedroom apartment, located close to Old Street roundabout on Wenlock Road, is listed at £1,025,000 on a website that lists properties available on a part-buy, part-rent basis.

The flat is being sold by Islington and Shoreditch Housing Association (Isha), and is part of a “contemporary development of stylish apartments” called The Cube.

The Sharetobuy website describes the property as being located in a “vibrant and exciting part of the London Borough of Hackney”, with buyers assured they would have “the opportunity to live London life to the full”.

Buyers need to purchase a minimum 25 per cent stake in the property. As reported in the Guardian, this would require a household income of £77,000, compared to the median salary in Hackney of £31,000.

The advert says preference will be given to local authority and housing association tenants, Ministry of Defence employees and people who live and work locally.

Betsy Dillner, director of campaign group Generation Rent said: “This million pound price tag makes a mockery of the government’s claims to deliver affordable housing. The people who could afford this shared ownership scheme could comfortably afford full ownership in any other part of the country – or London for that matter.”

She added: “The danger is that we’ll see more of these properties get built and they’ll make the government look like they’re helping without actually housing people on low incomes.”

A statement from Isha said the property’s valuation is an “extreme example” and that only three of their shared ownership properties are priced above £900,000. They added that since the flat has three bedrooms, the cost could be split between multiple purchasers.

Clare Thomson, chief executive for Isha, said: “We recognise that the home… is out of reach to many of the households we prioritise to assist,” and added: “The proceeds from shared ownership are invested in providing low cost rent homes in the same area.”

Councillor Philip Glanville, cabinet member for housing, said: “We’re committed to building more social rented and more lower-cost shared ownership homes, but from the regulation of private renting to the building new homes we need a commitment from the government and Mayor of London to listen to councils and start tackling the housing crisis.”