'It hasn't sunk in': Residents win 60% rent reduction in London council flats

Hundreds of families in temporary accommodation in east London have had their rent reduced by about 60% following a four-year campaign against their corporate social landlord.

The London borough of Newham announced this week that “following a series of management issues” 250 properties in the borough, which were leased out by the council to the property management company Mears, would be transferred back into council management.

The families, who live in Custom House and Canning Town, have previously told the Guardian that the homes they live in are unsafe and unhealthy, with issues such as crumbling asbestos floors, brown water running from taps, and leaky roofs. Those who had struggled to pay their rent, which they described as “sky high”, had fallen into arrears. Some of these issues were compounded during lockdown.

Over the past four years, the families have campaigned – under the banner of People’s Empowerment Alliance for Custom House (Peach) – for social rent and to have repairs completed in a timely manner, staging protests and holding street parties while negotiating with the council.

As well as charging social rent, the council will now respond to repair works needed in the homes, which have been used as temporary accommodation to house local homeless households. The residents said the exact rent reduction would depend on each property.

Fayha Badi, 40, said the rent reduction would be life-changing for most families in the area. The 40-year-old mother of three, who is studying for a masters in biomedical science, said: “I never imagined I could win like this in the end.” Badi, who currently pays £356 a week for a three-bedroom property, will probably pay around £120 when the council takes back control. With the money she saves, she can finally take her children on holiday for the first time in five years.

She added: “It’s all through being part of Peach and meeting all these kind people. When I think of them, I feel safe and confident.”

Rokhsana Fiaz, Newham’s mayor, said: “This marks a real victory for the residents who have had historical issues with the management of the property by Mears, which I have been committed to address from the time I was a councillor in Custom House.

“Since becoming the mayor of Newham in May 2018, officers have worked tremendously hard with residents to address these issues, by challenging Mears to meet their responsibilities and now we’ve come up with an acceptable solution which causes minimum disruption for tenants.”

Mears said it had spent £400,000 annually on repairs to the properties, which were condemned for demolition by Newham council. The company said the rent levels in the blocks were set by the council.

Alan Long, executive director of Mears, said: “First and foremost, I am deeply saddened that the residents of Customs House have been the victims of political indecision and electoral promises which could not have been delivered. I hope that Newham will now be able to start the much-needed regeneration of the area to develop the homes needed in their borough.

“Whilst we are sad to be leaving our relationship with the tenants, I am thankful that this may be an opportunity for Newham to finally create new homes that the residents of Customs House deserve. Mears believes it has met its contractual obligations to residents and the council over the past nine years and have delivered the best service possible in the circumstances.”

The properties will eventually be demolished and replaced as part of the regeneration scheme. The council announced plans that will allow current Mears tenants who have lived in the area for five years and were placed into their homes by the council to receive a secure social rent home. These plans are currently subject to cabinet approval.

Boglárka Filler, 39, who lives in a two-bedroom property, said she finally felt hopeful about the future following Newham council’s announcement. “Since I’ve been a member of Peach, it’s helped me avoid a mental breakdown. Without them, I wouldn’t be here. If it wasn’t for Peach, I would not have any hope and I wouldn’t be able to participate in the community at all.” Filler, who has two children, hopes to return to her studies.

“I’m still lost for words. It’s what we’ve been working for, it’s what we’ve been fighting for,” said Samantha Napa, 31, who works in the financial sector. “There’s been times where I just thought this is never going to happen, but the fact that it is actually happening, it hasn’t sunk in. It’s overwhelming.”

Napa, who has lived in her current temporary accommodation in Custom House for seven years, urged others in a similar situation to come together and organise. “By coming together, by showing that we are united as one, they’ve had to listen to us.”