A computer-generated image of One the Elephant. Image: Lend Lease
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The London development without a poor door

Because providing affordable housing is too expensive.

Apartment blocks which use “poor doors” to segregate tenants based on their wealth have been hitting the headlines recently on both sides of the Atlantic. But for the developers of one London block of flats, the prospect of letting affordable renters in – even through a separate door – was too much to contemplate.

One the Elephant, a 37-storey building with 284 residential units at the glamorous Elephant & Castle roundabout, was granted planning permission in November 2012, and is currently under construction. The London Borough of Southwark has internal targets which require all new developments in Elephant and Castle to include a minimum of 35 per cent affordable housing.

But in council planning meetings, developers Lend Lease argued that they would be “unable to support the inclusion of affordable housing within the development”. The firm’s reasoning was summed up in a council report as follows:

 A second core would be required to provide separate access, including lifts and circulation areas, to socially rented accommodation within the development.... the cost of construction would increase with the introduction of a further lift, as well as separate access and servicing arrangements.”

In other words, it’d cost too much to segregate the two types of tenant. And, in case you were wondering, they had to have separate entrances, because “not doing so would have significant implications on the values of the private residential properties”.

Luckily for Lend Lease, Southwark council came up with an ingenious solution. Southwark Council’s planning policy states that developments can bypass the 35 per cent affordable housing minimum “in exceptional circumstances” by “making a payment in lieu”: this can be invested in community services or affordable housing elsewhere. So instead of devoting 35 per cent of the development – around 100 units – to affordable housing, the firm could contribute £3.5m to the construction of a community leisure centre next door (it’s expected to cost a total of £20m).

Southwark estimates that, at current build costs of "£100,000 per habitable room at current values", putting up 100 affordable units would set you back around £10m. That’s nearly three times as much as Lend Lease donated to the new leisure centre. By declining to build the affordable housing, the developer seems to have saved itself a packet.  

Darren Johnson, a member of the London Assembly who campaigned against the decision, said by email:

 It's outrageous that the council and the Mayor of London would accept this argument, that the cost of 'poor doors' should mean there will be no flats in the development for ordinary Londoners at all.”

He called on the Mayor to threaten to refuse any such applications, “and strengthen planning policies against segregation”. Fingers crossed. 

This is a preview of our new sister publication, CityMetric. We'll be launching its website soon - in the meantime, you can follow it on Twitter and Facebook. 

Barbara Speed is comment editor at the i, and was technology and digital culture writer at the New Statesman, and a staff writer at CityMetric.

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Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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