A community living on an estate which will be bulldozed to make way for new homes worth twice as much is being “priced out of existence”, it was claimed this week.
Residents on the Colville Estate, off Dunloe Street, in Hoxton, say they are being been forced to sell their homes for up to £70,000 less than the market value as Hackney Council buys up the properties under compulsory purchase orders ahead of building a new estate comprising 935 homes.
Weaver and textile designer Emily Mackey, who bought her flat in 2004, claims an independent valuation of her two bedroom property found it to be worth £300,000 – but the council has offered her £230,000.
The 37-year-old, whose family has lived in Hoxton for five generations, now fears she will be priced out of London altogether.
She said: “When I moved into this area I knew prices would go up, but I’m not going to benefit from it. I just want what my flat’s worth. I think they are acting unfairly as they have all the way through.
“I’m going to be forced out of this flat with nowhere to move to. I don’t know where I’m going to live but it’s not going to be in London.”
Tenants have been offered temporary council accommodation if they wish to buy a home on the new estate – but none of the new homes will be less than £350,000 for a two-bed flat and Ms Weaver says the town hall have told her an equivalent new build to hers would be worth almost £450,000.
Londonwide Assembly Member Andrew Boff said: “One resident I spoke to will be given less than what he paid for the property in 2007, meaning his savings will be completely wiped out.
“Buying a home in the new development will not be an option for many of them as the cost will be too high.
“Hackney Council is wrong to grab people’s homes and price this community out of existence. They should immediately offer a sensible settlement to all those affected.”
Cllr Linda Kelly said: “What’s happening on the Colville Estate is absolutely disgraceful.
“Residents have bought property as an investment for their future or children.
“For no fault of their own their homes are being demolished.
“Even if they only paid £100,000 when they bought a home there, you would be lucky to sell a flat for less then £300,000.”
But Cllr Karen Alcock, deputy Mayor of Hackney, said: “Leaseholders who wish to remain living on the estate will be able to move into new homes under leasehold swap, shared ownership or shared equity.
“Current offers to leaseholders are based on market values and have been independently determined by an expert appointed by the Royal Institute of Chartered Surveyors, based on local housing prices, like-for- like properties and an assessment of the current property.”
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