TH Labour Demands Urgent Action Following Allegations of Exploitative Practices in Former Council Housing Blocks

For Immediate Release
Date: 16/4/2025

Cllr Asma Islam, Labour Councillor for Weavers Ward and Shadow Cabinet Member for Housing, has written to Tower Hamlets Council and the Government in response to a recent London Centric article alleging exploitative practices by a property developer operating in former council housing blocks within Tower Hamlets.

Cllr Asma Islam

Cllr Islam has written to Cllr Kabir Ahmed, Tower Hamlets Cabinet Member for Housing and Regeneration, and to Matthew Pennycook MP, Minister for Housing. In both letters Cllr Islam express grave concerns about claims that social housing tenants are being approached to engage in legally complex leasehold agreements without independent advice, ultimately facing escalating service charges and reduced maintenance — often with minimal oversight or transparency.

In her letters, Cllr Islam highlights:

  • Calls for Investigation: Urging the Council and central Government to undertake formal inquiries into developers accused of predatory practices and to assess the prevalence of such schemes across the UK.
  • Tenant and Leaseholder Protections: Requesting that those approached for collective enfranchisement or air-rights offers are encouraged to seek independent legal advice before entering in to agreements with developers.
  • Transparency and Accountability: Stressing the need to examine off-shore company involvement in buying and managing blocks originally built with public funds for social housing.
  • Future Safeguards: Seeking clear guidance and enhanced legal protections to ensure vulnerable residents are not left at the mercy of profit-driven schemes.

“These allegations point to a deeply concerning pattern of behaviour that could leave our most vulnerable residents footing the bill. We must ensure that tenants and leaseholders receive proper legal advice and that any developer engaged in questionable tactics is held accountable,” said Cllr Asma Islam. “I am calling on the Council and the Minister for Housing to investigate these practices and take immediate steps to protect the rights and welfare of our social housing residents.”

ENDS

Notes to Editors

  1. Cllr Asma Islam is a Labour Councillor representing Weavers Ward in Tower Hamlets and serves as the Shadow Cabinet Member for Housing.
  2. The London Centric article in question can be found here: James Gold: The “dishonest” London property developer who could be building on your roof
  3. Copies of the letters addressed to Cllr Kabir Ahmed and Minister Matthew Pennycook MP are available below: