CPO Scheme Update – The Aylesbury Estate, Walworth, Southwark, London SE17
Olden Property has been acting for leaseholders at The Aylesbury Estate since 2015. We have negotiated the sale of twelve leasehold properties on the estate since then and we are currently advising twenty-five additional leaseholders.
We advise our clients on the compulsory purchase system and where their property sits within that process at any point in time. We value the property and negotiate a sale on compulsory purchase terms. This means we ensure our clients receive the full complement of compensation they are entitled to and are aware of their rights throughout the process. There is no cost to our clients in this service as it is the Council that have to pay for the leaseholders professional advice. It is important that this is agreed in writing in advance.
The Aylesbury estate near Elephant & Castle in South East London was selected by Tony Blair for his first speech as prime minister on 2 June 1997, where he made his ‘forgotten people’ speech, saying there must be no more “no-hope areas” in new Labour’s Britain.
This means it is over 25 years that many of the homeowners within the estate have been awaiting a final decision from Southwark Council to acquire their property by compulsory purchase. As you would expect, where an estate is earmarked for demolition, medium to long term investment is stopped, and inevitable deterioration will set in. The Aylesbury Estate is no different and after 25 years of delayed regeneration the estate has been left deteriorate considerably.
The Scheme is a joint venture partnership between Notting Hill Genesis and Southwark Council. It is a major estate renewal project involving the redevelopment of 25 Hectares of residential property. The scheme aims to deliver 3,500 new homes. It is estimated that approximately 2,000 homes are earmarked for demolition on the remaining 3 phases of the Aylesbury estate redevelopment.
Like all estate renewal schemes throughout London, the scheme timing is very much in the hands of decision makers at the Council. Given it is over 25 years since a decision was made to regenerate the estate, one would be forgiven for thinking it should already be completed. The Council do not appear to be in any rush to acquire property and this creates huge uncertainty for homeowners and investors alike. Although small parts of the estate have been acquired in the past with the use of compulsory purchase, the majority has not. A problem created is that leaseholders can not sell the Property on the open market – who wants to purchase a property earmarked for demolition? Who wants to lend money for a flat earmarked for demolition? As such the Council has complete control over the market and you could say has done for over twenty years. A Blight Notice served on the Council is an option but this is not always possible, we will write a separate blog on Blight in due course.
There are indications a small CPO will be made in the coming months. We understand that Ravenstone, Padbury, Winslow and parts of Wendover (all blocks on the estate) will be included in a compulsory purchase order in the coming months.
Olden Property Negotiations
The majority of Olden Property clients have been awaiting a CPO for many years but to date the Council are mainly acquiring property by agreement. This means any clients who have sold property have done so because they were happy to do so, not because they were forced to. As a very quick snapshot of where negotiations are, the latest offer from the Council on a two-bed property, measuring 645sq ft was £315,000 equating to £488psf. In addition to this the client is eligible for 10% home loss payment, £31,500 plus reinvestment costs for another property and disturbance.,
If you live or own a property on the Aylesbury Estate and would like a free consultation on your specific situation, please get in touch.