The FINANCIAL — Long-established social housing tenants living in some of the wealthiest areas of inner London fear the city’s escalating house prices could push them out of the areas they have lived in for generations. The gentrification of their boroughs, rising living costs and changing communities are troubling low-income residents, according to an LSE report released.
The changing face of their neighbourhoods is fuelling their fears about the impact of welfare reforms, public spending cuts and job losses.
LSE’s findings endorse the social value of mixing high and low-income residents in expensive neighbourhoods, but also expose tenants’ fears for the future.
“The tenants benefit from good schools, transport, parks and amenities and their children therefore aspire to a better life. However, some feel hostile to the rapid gentrification occurring in their neighbourhoods," said Professor Anne Power from LSE Housing and Communities, report author.
“House values are skyrocketing in London, leading to overcrowding and placing additional pressures on tenants. This includes pressure on landlords to sell housing stock located in expensive boroughs to allow more houses to be built in low-cost areas,” Professor Power added.
“It is clear from our research that despite the challenges currently facing low-income tenants in expensive boroughs, the benefits to society from sustaining a social mix in high-cost areas are immense. These benefits justify the cost of owning and subsidising rented property in these areas,” Professor Power said.
“This report highlights how social housing in all parts of London contributes to a socially inclusive society. There are parts of inner London now that are almost deserted at weekends because of the changing nature of the housing market. We believe central London is stronger for having people with a mix of incomes and not solely those with financial wealth,” said Grahame Hindes, Chief Executive of Octavia.
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