Councillors Financial Housing ILA Information Islington Islington Council LBI Leaseholders Leases Major Works Service Charges

Massive Rent Increases

Islington Councils latest budget, as usual, is all “Doom and Glum” and continually pointed at the great hole in the  borough’s finances. 

Nevertheless, since the councils main funding stream is basically through council rents and Maintenance bills, their obvious solution is to raise the average Council rents by a whopping great £9.71p per week. This is in order to replenish the Housing Revenue account, and facilitate further mis-running of the borough. 

However, strange though it may seem, whilst the borough is financially struggling to survive, the Council have also re-purchased 389 ex Council flats. It’s not to move islington tenants out of temporary accommodation, such as bed and breakfast, which costs the borough a fortune, but to be used as further…short term accommodation..!

Question, if this borough is having financial problems : – Just how/and from where, did they acquire the money to finance such a massive purchase?

Using a broad brush approach, approximately 389 flats at an average cost of £400.000 each? (and we all know, that in this borough you can’t buy a shoe box for that, much less 2, 3, and 4 bedroom flats) comes to approximately £155.6 million pounds!

Question, If the purchase of these flats involved a grant…how much was it in total?… if a loan, just how much undisclosed debt are we now jointly carrying?…and what % interest are we going to be paying?, to whom, and for how many years to come?. Which of course will be solved, once again, by simply, raising the RENTS and MAINTENANCE bills …Again and Again…

It “Beggars Believe” what both Tenants and Leaseholders of this borough are forking out in order to cover financial mismanagement…

Hopefully, the usual “Smoke and Mirrors” won’t be enough this time around.!!!

Dr Potter

Chairman ILA

Councillors Financial Housing ILA Islington LBI Leaseholders Leases Major Works Repairs Service Charges

Follow the money!

A simplistic explanation of why we pay so much…!!!

Why are council Rents and Maintenance bills, so inexplicably high? …simple,  …Just follow the money!

The council state that their main funding stream is basically via council rents, and maintenance billing. This is paid into the Housing Revenue Account by tenants, leaseholders, and 4000 absentee landlords…So…

1/ Islington Council issue contracts to maintain the borough’s estates.

2/ The Contractor scopes out the work, price the job, and bill’s the Council for work completed.

3/ The Council (using 33% of the housing Revenue account) pays the tenants contribution. It apportions the remainder between their leaseholders and absentee landlords.

4/ The absentee landlords then recover their cash by raising their rentals.

Who gets this public money?

1/ Builders get paid directly by the council, come what may.

2/ The council simply raise the tenants rents, and present Home owners with a massive bill.

3/ Landlords increase their rental charges to cover their liabilities.

Where does the money wind up!

1/ Contractors reinvest their massive profits in new projects.

2/ Builders simply “rack it in” by piecemeal subbing-out of the fractionated contracts.

3/ Council reduces its gross over spending to appear efficient.

4/ Landlords pay off their Mortgages.

5/ Private tenants reduce their renting costs by flat sharing.

6/ Mortgage lenders always win in the long run, since their investment is inevitably founded in “Bricks and Mortar”. 

All financed from the constant uncontrolled wastage of public money.!


1/ Council reduces contract sizes

2/ Council stops issuing astronomical bills to pay contracts

3/ Council controls Building and Maintenance costs by bringing building projects “Back in House”…

4/ Council demands total accountability

5/ Council demands value for money

6/ Council accepts “Individual Corporate Responsibility”, as the norm. 

Which is no more than what they’re already being handsomely paid for doing…!!!

Dr Potter…

Chairman ILA… (