Andrew Dismore

During yesterday’s Mayor’s Question Time, Andrew Dismore, Labour London Assembly member for Barnet and Camden raised the plight of residents in shared ownership who have seen rents and service charges rise dramatically.

Mr Dismore challenged Mayor Johnson to introduce restrictions on rent and service charges increases.

Mr Dismore referred to the case of a Beaufort Park resident. Mr Dismore told the Mayor:

“In the 5 years she has lived on her shared ownership flat on Beaufort Park, her service charges have gone up over 100% and her rent by 50%.  Her case is all too typical.

These increases have pushed her into mortgage and council tax arrears, to the extent that the Council sent in bailiffs for her council tax and took walking possession of her watch.

She has asked me to ask you,  why is there no cap on the service charges or rent rises,  as she  certainly does not earn enough to pay for these extortionate increases.

She says “I was sold a dream which has turned into a nightmare.  Had I been properly informed, I would never have committed to shared affordable housing which has brought me to financial despair.”

After MQT Mr Dismore said:

“the Mayor shed crocodile tears. He said he would look at the case, but rejected the key demand which would help this resident and all the other shared ownership residents who are struggling in similar circumstances: they need tough restrictions on the amount that their rents and service charges can be increased, to give them financial breathing space. The Mayor rejected this proposal out of hand.”

Mr Dismore later added that the residents parking space, which she is not allowed to buy, costs another £250 per year and she is discriminated against because she is not allowed to use the fitness centre which is reserved only for those who paid the full open market price for their flat. The service charges have increased from £69 pm to £140pm and rent from £400 to £600, in addition to her monthly mortgage and council tax payments.