Local Space sold 24 properties to The London Borough of Hackney this month, resulting in rent drops of an average of 70%, from Local Housing Allowance (LHA) levels to social rent levels. 41 additional tenants who live in our existing Hackney homes have seen rents fall by around an average of 50% from LHA levels to London Affordable Rent, plus any service charge.
Our CEO Josie Parsons told Inside Housing “we are very proud of our long-standing partnership with Hackney Council, one which will continue to grow thanks to our newly extended agreement”.
Phase 2 of the deal will involve a reduction in rent for further 26 properties by on average 50%, from LHS to London Affordable Rent, plus any service charge. 36 more homes in Hackney, Waltham Forest and Barking & Dagenham will be purchased with the proceeds from the sale of the properties. Hackney Council has the option to buy more properties, and any homes not purchased will be sold on the open market so that we can buy another 54 homes.
We are delighted that our new 30-year deal with Hackney Council means lower rents for our Hackney tenants and are looking forward to growing our partnership and continuing to tackle the housing crisis within the borough.