Thursday 19 May 2016 1.13pm
Long time lurker, first time poster. Felt compelled to say something following the story I saw on the SE1 twitter feed regarding the Borough Triangle development failure. This is a real shame given the urgency of the need to get more homes built.
I read the article with Peabody blaming the governments 4% cut to the rent charged to those in social housing for the failure of the scheme. I thought this very odd. Reading further I see that the Peabody development is almost entirely a private sale development – presumably an exercise to diversify their income stream away from reliance on government grants. Whilst I can see that their income from social rents will be dropping 1% per year for the next 4 years I am at a loss as to how this has scuppered this particular scheme. They say these reductions will loose them £1.2million on this scheme per year for 5 years. But this scheme is overwhelmingly private rent.....
Its interesting to note Ministry of Sound
s allegations of incompetence on the part of Peabody who they claim are unable to manage such a large commercial project.
Just an observation but something doesn’t smell right here.