Innovative charitable housing association, Local Space, who specialise in the provision of high-quality, people-focused settled accommodation for those facing homelessness in East London, has negotiated a new agreement with long-term partner Hackney Council, resulting in the partnership being extended for a further 30 years to 2051.
The agreement will initially see Local Space sell 24 high-value properties, as part of phase one, direct to Hackney Council with a phase two providing the borough with an option to buy further properties subject to funding confirmation. The proceeds from phase one are being used to fund the purchase of 36 homes by Local Space, both in Hackney and outside of the borough. If Hackney Council decides not to acquire the remaining properties, as part of phase two, these will be sold on the open market enabling Local Space to acquire a further 54 homes.
The 36 homes being acquired, as part of phase one of the deal, are located within the London Borough of Waltham Forest and the London Borough of Barking & Dagenham, and the London Borough of Hackney, where Local Spaces’ portfolio will increase from 106 to 118 homes.
The homes will add much-needed capacity, to enable Local Space to continue to work closely with Hackney and support the council in housing those owed a homeless duty.
As part of the agreement, Local Space has also reduced the rents by half across all properties to which Hackney nominate homeless households to London Affordable Rent benchmark rates, making them sustainably affordable for both the tenants and Hackney Council. Existing tenants living within the properties acquired by Hackney will be offered secure social rent tenancies, which is a significant step change in their security of tenure and a big reduction in their monthly rent, with some properties seeing a reduction of 62%.
Josie Parsons, Chief Executive at Local Space, commented: “We are very proud of our long-standing partnership with Hackney Council, one which will continue to grow thanks to our newly extended agreement.
“We have been able to work with Hackney Council to not only provide secure tenancies at social rent levels across the currently agreed 24 properties, following our sale of these to the council, but are also able to use the proceeds to fund the purchase of 36 additional homes, with the potential for 54 more, to give the council access to genuinely affordable accommodation at LAR levels, enabling Hackney Council to continue to fulfil its homelessness duties and Local Space to continue delivering its mission, delivering the economic, qualitative, and social benefits associated with providing much needed stable and affordable homes, while relieving the cost pressures temporary housing has on the borough.
“The Covid-19 pandemic has revealed the plight of the homeless and struggling households, putting a spotlight on the hidden homeless, a specific homeless need which our accommodation serves to address. From our experience of working with six local authorities, we pride ourselves on being a partner of choice, helping local authorities be less reliant on the private sector, thanks to our expertise and ability to deliver high quality temporary accommodation.”
Cllr Sade Etti, Hackney Council’s Mayoral Advisor for Homelessness, Housing Needs and Rough Sleeping, said: “This agreement means we’re investing in bringing 25 former Council properties, which are currently being used as temporary accommodation, back into use as permanent social housing for Hackney residents – providing a safe, genuinely affordable and secure place to live for families who need them most, as they were initially intended.
“But this partnership will also help us with our work to tackle the ongoing housing crisis and challenges of homelessness facing Hackney and our residents. This will help provide additional and more affordable rented accommodation in or close to Hackney for families who are in housing need.”
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