35% Campaign update – The shopping centre traders expelled by regeneration

The shopping centre traders expelled by regeneration

Aug 24, 2020 12:00 am

University of the Arts ignores traders’ plight -In our last blog post we detailed how Up the Elephant and other campaigners had written to the University of the Arts, London (UAL), informing them that at least 28 traders had not been relocated new premises, as they face the closure of their businesses, to make way for the demolition and redevelopment of the shopping centre. Analysis by Latin Elephant puts the number of traders in peril at between fourty and fifty.

All the displaced traders (bar one) come from black and ethnic minority backgrounds and the campaigner’s letter demanded that UAL withdraw from the redevelopment, which includes a new UAL campus, in line with its Black Lives Matter statement “We aim to build our anti-racism commitments through collective engagement into actions that make a meaningful difference.”

No reply from UAL

Nearly a month after the letter was sent no reply has been received. We are printing below the stories of six of the displaced traders, in their own words, to prompt UAL into giving some thought to those who are losing their livelihoods so that they can benefit from shiny new premises. Southwark Council and developer Delancey might also want to take heed.

Nassim Cheraitain

My name is Nassim Cheraitian, I’ve been trading at Elephant and Castle market for over 20 years. The closing down of the Shopping Centre, for us, wasn’t good news, because they haven’t helped us. For the last three, four, five years business has been down, we’ve been losing, losing… they promised us they would help to find us to find a new unit but they didn’t. I applied, they asked us for all our details […] we provided them with everything. After that they said that there isn’t space for everyone. And it’s been left like this. We don’t have anywhere to go. They [the council] gave us £3000, but honestly it’s not really [been helpful]. £3000 is nothing — three years ago they told us they would help us, so all that time we’ve been waiting, the business has gone down, we’ve been losing money, losing customers every day, and we were waiting to get something back. Instead we got £3000. I don’t have any plans, as I’ve been waiting to get this promised help from the council […] we’ve been here for too long for them to leave us like this […] [my customers] are unhappy, they think it is unfair to us, we’ve been here too long to be left with nothing—no shop, no unit, nothing.

Shapoor Amini

My name is Shapoor Amini, I’ve worked at this market since 2001. These people promised us so many things, they said we’ll give you a space, we’ll look after you guys, but they’ve done nothing for us. Some people who were [trading] here for one year, two years, 6 months, they got a space. Me, I’ve been here 20 years, and they gave me nothing; they just said sorry, sorry, you still need to wait. And I don’t know what’s going on. I had someone who worked for me who got a space! But I’ve been here for twenty years and nothing. I applied so many times—I’ve made calls, been to the council, been to the office, done lots of paperwork […] been to countless meetings, and still nothing. I don’t know why not, they never talk to us face to face. They sent letters out […]some people got something, others didn’t […] everybody knows me here […] customers come to me as say ‘where is your new space?’, and I say I don’t know. My whole life has been spent in this market, in this area, and now I don’t know what to do. It’s very difficult for me. I have a kids, a wife… they said if you find yourself a shop we will help you. But at this late stage how can I find a shop? […] they promised us too much. Places are asking for a £30,000 deposit, it is very difficult.

Edmund Attoh

My name is Edmund, I’m working here [at the market] over 20 years. Things are very difficult, they gave a space to some people, who’d been here 5 years, 4 years, 2 years, people who have been here for a long time didn’t get nothing. That’s what we don’t understand, that’s why we are frustrated. We don’t know where we are going now. I applied for a space, and anything they asked, we give to them. They turned us down. But they didn’t say [why]. It has affected us […] someone who has been here for 20 years, and suddenly they say go. We don’t know where we are going. It is very hard for us. My customers always call me and ask where we are going. But we don’t know what to tell them […] that is a problem for us […] we’re looking to them (the council) […] we need help.

Mohammed Jamal

My name is Mohammed Jamal, I’m working in the market the last 8 years. I’m in a very bad situation, because I haven’t found a relocation […] I’ve got four children, and i’ve got no choice [but to work at the market] because I’m more than 55 now, and can’t find any other suitable job, and I’ve also got an illness I take medicine for […] customers ask ‘where are you going’ I said I still can’t find relocation […] because the council says there is no more relocation, it is all full. But I am still waiting for something to come up. One lady told me I’m not even on the waiting list […] she said your application is on file but not on the waiting list […] because there are so many people and the relocation spaces are limited […] I applied many times for a space […] and a small shop is alright for me […] I sent many emails, but no answer. The feeling of not having anything is very painful. If someone doesn’t speak English very well, or is softly spoken […] I am very soft, not talking a lot. That could be why no-one helped me.

Muhammad Raza

My name is Muhammad Raza, I’m working here since 2006. The market is dead now, before it was alright, but slowly, slowly they are closing down shops, big stores—Tesco, Poundland, Boots is going—it’s really dead now so it’s really hard to survive. And because we don’t have a space we don’t know what to do. Tree Shepherd and Delancey aren’t answering our emails, actually I emailed two days ago and didn’t get a response. This morning Tree Shepherd called me and said ‘if you find yourself any shop, we’ll help you’, I said which kind of help? Because I’m looking for a shop […] but if I look myself shops are £15,000, £20,000—I can’t afford that rent. And Tree Shepherd said they don’t have any affordable rents. If your looking for Castle Square or Elephant One, don’t even think about it […] they said ‘we’ll help you’, but which kind of help? I don’t know. This has affected my business, my life, my family, I don’t know what to do next.

Mohammed Al Waris

“My name is Mohammed Al Waris, I’ve been trading at the Elephant and Castle market for the past 15 plus years. Throughout these years I’ve been selling fashion accessories, and I’ve made friendships within the local community. Recently what happened was that they tried to demolish the shopping centre, and that affected most of the traders’ lives, I’m one of them. We haven’t been offered anything. We were asked to pick three different locations—Castle Square, Perronet House, Elephant One—they haven’t offered me none of them. They haven’t told me [why], they just said we haven’t got any affordable unit for you guys. At the beginning they promised us, and then we suffer for the past three years, they closed the subway (underground walkway) and the business going down by about 80%. Two years before they came with an application, saying that we going to definitely relocate you 100%. Now we have one and a half months left to leave the market, and we can’t get any help from Tree Shepherd, or from Delancey. Every time we talk to the they say ‘sorry we haven’t got anything for you guys’, so we can’t do nothing. I believe we are entitled to a place in this area, cos they are making millions from this project, why can’t they help these traders? These traders have families they are trying to look after. By kicking them out, they are destroying their family life […] I really hope they can think about these traders and help to move them to a place nearby the area, where they have their customers […] they say you can’t stay in the area because this area, like Central London, is going to be very expensive. So where should we go? We don’t know.”

Our campaign…

Our campaign is to get Nassim, Shapoor, Edmund, Mohammed, Mohummad, Mohammed and their fellow traders new premises or suitable compensation for the loss of their businesses. The power to do this lies with Southwark Council, Delancey and University of the Arts London (UAL), but time is running out fast – the centre is due to close on 24 September.

You can help us by sending a Twitter message to the Southwark Councillors responsible for this fiasco:

  • @peterjohn6 (Council Leader)
  • @rebeccalury (Deputy Leader, Ward Cllr and Cabinet member for Equalites and Communities)
  • @MerrilDarren (Ward Cllr and Chair of the traders panel that was supposed to support traders)
  • @cllrmseaton (Ward Cllr and Chair of the Planning Committee)
  • @JohnsonSitu (Cabinet member for Regeneration)
  • @Leo_Pollak (Cabinet member for Social Regeneration)
  • @steviecryan (Cabinet member for Jobs, Business and Innovation)
  • @coyleneil (Local MP and Elephant & Castle resident)

You can find more infomation about the displaced traders can be found here.
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New Housing Strategy – Consultation

Dear TRA Chair,

Over the past year the council has been consulting on a new housing strategy. This has included a stakeholder session back in June 2019, and a public consultation between January and May this year.

We were in the process of consulting on the housing strategy when the COVID-19 pandemic started to seriously impact on the United Kingdom in March 2020 therefore the consultation period was extended to May.

Many thanks for all the comments received so far.

The housing strategy is a long term document covering the next thirty years but the COVID-19 pandemic is likely to have a significant impact on the delivery of the strategy in the short term to medium term, and there may also be longer term consequences.

The pandemic has impacted on every principle of the housing strategy. We have have added new text throughout the strategy.

We have also made changes to the strategy in response to comments made so far during the earlier consultation, such as adding more text about tacking climate change.

All changes since the past consultation draft are included in purple text.

As there has been considerable change since the original consultation we have decided to do another quick final round of consultation.

We want to give partners and other key stakeholders an opportunity to comment on the proposed changes, and to highlight any other changes you think are required to respond to the new challenges with the pandemic.

Please email any comments you have to housingstrategy2@southwark.gov.uk by the end of August 2020.

We look forward to hearing your views.

Many thanks,

Rob

Robert Weallans, Housing Strategy Manager

Housing Strategy and Business Support, Resident Services Division, Housing & Modernisation Department

020 752 51217 |   : robert.weallans@southwark.gov.uk | Tooley Street, 5th floor, Hub 3

Copies of the housing strategy are available at www.southwark.gov.uk/housing/housing-strategy

Visiting address: Southwark Council, 160 Tooley Street, London, SE1 2QH

Postal address:   Southwark Council, P O Box 64529, London SE1P 5LX

www.southwark.gov.uk/mysouthwark For council services at your fingertips, register online.   You can also manage your rent or service charge account, pay your council tax as well as report and track your housing repairs.

Construction of 4 new flats at Balin House

Planning Application 20/AP/1159

EXISTING_PLAN__SECTION___ELEVATIONS-868963

20_AP_1159-APPLICATION_FORM_-_WITHOUT_PERSONAL_DATA-867293

20_AP_1159-DESIGN___ACCESS_STATEMENT-867289

20_AP_1159-SITE_LOCATION__EXISTING___PROPOSED_BIN___CYCLE_STORAGE-867287

20_AP_1159-EXISTING___PROPOSED_ROOF_PLAN-868970

PROPOSED_PLANS__SECTION___ELEVATIONS-868969

EXISTING_PLAN__SECTION___ELEVATIONS-868963

20_AP_1159-FLOOD_RISK_ASSESSMENT-876910

Stop demolitions and requisition empty homes!

Dear Friend

I hope you have been keeping well during these difficult times.

The Up the Elephant campaign has been working with Latin Elephant and Southwark Law Centre, to help shopping centre traders through the Coronavirus crisis and with their relocation plans. According to Southwark Council 45 traders have now been relocated, with 28 applications rejected. Traders can also draw on two funds – the relocation and transition funds – and Latin Elphant and SLC have been doing great work helping traders with this.

The campaign has also joined with eighteen other groups to send an open letter to Southwark demanding that it Stop demolitions and requisition empty homes to help solve the housing crisis.

There will also be a socially distanced protest to open up empty homes this Thurs 4 June 6pm, outside Pret a Manger
One the Elephant, 1 St Gabriel Walk, Elephant and Castle, London SE1 6SA
FB Event here

This is a socially distanced protest. Please bring a mask or face covering and stay 2 metres apart.

Regards
Jerry
PS We will be having an on-line meeting very shortly – notice and link to follow.

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35% Campaign update – Old Kent Rd scheme faces loss of affordable housing

Old Kent Rd scheme faces loss of affordable housing

May 01, 2020 12:00 am

Berkeley Homes threatens to reduce affordable housing at Malt St –Berkeley Homes is the first developer in Southwark to threaten to reduce the affordable housing in one of its schemes, since the onset of the Coronavirus crisis. Berkeley secured planning permission for the Malt St development, just off the Old Kent Rd, in June 2019, with a promise to build 40% affordable housing. Since then it has joined-up with Peabody, who had a smaller, neighbouring development on Nyes Wharf. Together the two sites will provide 1,569 new homes, with 40% affordable housing (359 at social rent and 222 shared-ownership), delivered by Peabody.

Now a planning committee briefing reveals that this affordable housing is at ‘risk’ because Berkeley intends to mount an appeal that will reopen the question of the viability of the scheme. To prevent this happening, the briefing recommends approval of an unprecedented clause in Southwark’s s106 planning agreement with Berkeley, that could see all the affordable housing lost, should development partner, [Peabody] hit financial trouble.

The Southwark Law Centre has written to the planning committee, objecting to the proposed clause and requesting a deferral, to allow the serious issues it raises to be properly addressed.

Why a Mortgagee in Possession (MIP) clause matters

The planning committee is being asked to approve a so-called Mortgagee in Possession (MIP) clause. Simply put, if a borrower cannot pay their mortgage, then the lender can take legal possession of the property and sell it – they become the ‘mortgagee in possession’ and up until now this has evidently been covered with a clause that keeps the affordable housing affordable ‘in perpetuity’ .

The MIP clause proposed for Malt St is different – it will not secure the affordable housing ‘in perpetuity’ , should Peabody fail. Instead, Southwark or another affordable housing provider would be given the option to take on the affordable housing, but if they do not, the affordable housing can then be sold onto the open market. If Southwark does buy the affordable housing, they would also have to pay anything outstanding ‘under the terms of the relevant security documents, including all accrued principal monies, interest and costs and expenses’ 1.

The MIP briefing is at pains to point out that such a situation is very unlikely to arise, because Peabody is in rude financial health; it has an annual turnover of £630m, an annual profit of £160m and assets of £7.6bn, so the possibility that it will fail is remote. The briefing reinforces the point by noting that no major housing association has ever gone into administration and quotes a GLA document that says ‘there is no known cases of a MIP clause being triggered…..’ 2.

Mayor of London opens the door…

This all begs an obvious question – why replace a MIP clause that protects affordable housing, in all circumstances, even unlikely ones, with a clause that does not?

Part of the answer is that this is what the Mayor of London wants. As Southwark’s briefing explains it, the Mayor wants ‘a consistent approach to MIP clauses across the London boroughs and to secure greater access to funding for RPs (registered providers) to increase the delivery of affordable housing’. The report continues; ‘In order to achieve this, the GLA MIP clause would allow, in certain limited and unlikely circumstances, affordable housing to no longer be “in perpetuity”’ . The briefing notes that Southwark’s own MIP clause is different from the Mayor’s, precisely on this point; Southwark does require affordable housing to remain such ‘in perpetuity’ , should a RP go into administration 3.

Peabody takes advantage

Peabody also wants the GLA MIP adopted, because it would allow them to borrow more money for other projects. To quote the briefing ‘Peabody have funds to deliver this scheme, but given the very large scale of the investment they are only willing to make such a commitment on the basis that they are able to secure additional funding in the future against the asset of the completed scheme’ . The report says that while the Malt St scheme is ‘entirely financed by Peabody from its own investment’ Peabody nonetheless wants more private bank finance and needs to make more of its ‘capital assets’ and the banks consider that the affordable housing ‘asset is not sufficiently liquid’. The briefing reiterates ‘Peabody has confirmed that they cannot proceed as the RP [registered provider] partner in this scheme without this clause’ 4.

Berkeley turns the screw

Berkeley backs Peabody, saying that it cannot, or will not, proceed without them. Berkeley goes on to threaten to reduce the affordable housing in the scheme, if the GLA MIP clause is not agreed, by way of an appeal to the government of ‘non-determination’. Berkeley would argue that Southwark had failed to conclude the s106 legal agreement in the required time, and also reopen the question of the viability of the scheme 5. Berkeley has a track record for such manouvers; this 2018 Guardian report shows that Berkeley has reduced its affordable housing obligations using viability reviews in almost all of its London schemes.

Southwark’s briefing tries to make the best of things; as well as emphasising the unlikelihood of any default, it claims that this decision will ‘not therefore set a precedent for other schemes.’ The Mayor has different ideas – he wants to see his MIP clauses used across London and says they will be used for anything he ‘calls-in’, (such as the Biscuit Factory) and that he ‘will promote their use for other schemes that are referable…and non-referable’ ie basically everything 6.

What we think

A Mortgagee in Possession (MIP) s106 clause that has evidently been perfectly adequate up to now is to be changed, compromising the ‘in perpetuity’ principle of affordable housing. The Mayor hopes that this will help meet his strategic 50% affordable housing target, but Peabody and Berkeley are not proposing 50% for the Malt St site. More generally, the Mayor has published no concrete commitment from developers and registered providers to increase affordable housing, in exchange for the Mayor’s more market-friendly MIP.

So, while it would be easy for Southwark’s planning committee to approve the clause in the almost sure knowledge that it will never be triggered and the affordable housing will remain as such, ‘in perpetuity’ , they should nonetheless reject the Mayor’s new MIP clause. It purports to facilitate a general increase in affordable housing, but there is no evidence before the committee that this will actually happen, either in Southwark or elsewhere. On the other hand, though, the Mayor’s MIP will definitely weaken the ‘in perpetuity’ status of affordable housing

This is the thin end of a very long wedge. These clauses have already been used in Islington, Tower Hamlets and Lambeth. They are being actively promoted by the GLA and the Mayor. Once they proliferate the whole principle of affordable housing being for ‘in perpetuity’ will start to be lost and developers and their registered provider partners will use the same kind of ingenuity that they have used with viability assessments to squeeze real affordable housing out of London 7.

The briefing and its recommendation, will be considered by the planning committee meeting on Monday 4 May, the first to be held online.

Footnotes:

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Support Shopping centre Traders not Delancey

Dear Friend

We are in the midst of a public health crisis which has impacted severely on people’s lives and livelihoods, forcing shops and businesses across the UK to close. The position for the Elephant shopping centre traders was already serious, with over half having nowhere to go, come the scheduled centre closure in July – now their situation is acute.

A survey conducted by SE1 website forum found that 72% of people wanted the centre to remain open beyond July. In response developer Delancey says that it still intends to go ahead with closure on the 31st July, but pledged that essential food and pharmacy facilities would remain available, if needed.

This is not good enough. All the remaining shopping centre traders need support now if they are to survive.

Southwark Council are due to assume Compulsory Purchase Order powers on behalf of Delancey, at their reconvened Cabinet meeting, this coming Tuesday. With these powers behind them Delancey’s hand in negotiations with remaining leaseholders and stakeholders will be strengthened. Southwark should not be helping Delancey to build a development that puts small traders out of business and does not give us the social housing we desperately need. 

Instead we call on Southwark Council to support the traders. We welcome its recent promise of £200,000 and now call upon them to release this money immediately as cash grants to traders.

We also maintain our demand that the centre is not closed until all the traders have been properly relocated or suitably compensated.

Please share these hash tags;
#supporttradersnotdelancey
#supportelephantnotdelancey

You can also find Up The Elephant on Twitter & Facebook.
You can read more on the 35% Campaign blog.

Regards
Jerry

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35% Campaign – Elephant Park – planning committee misled?

Elephant Park – planning committee misled?

Mar 01, 2020 12:00 am

Lendlease fails to declare public funding for affordable housing -Developer Lendlease failed to disclose at Last week’s planning committee meeting that it was in receipt of public funding, which could have increased the amount of affordable housing at Elephant Park (aka the Heygate estate regeneration).

The meeting was called because of the large number of objections to the final phase (H7 MP5) and the lack of additional affordable housing. We explained in our previous blog how Lendlease have met their 25% affordable housing requirement, while increasing the total number of homes, but without increasing the number of affordable homes or proportion of social rent (3%).

One of the objections, from the 35% Campaign, was that “There appears to have been no effort to take advantage of any public funding”. Southwark responded by saying: “There is no obligation on Lendlease to seek public funds.” (para 282, 283 of the officer’s report)

The planning committee followed this up in their cross examination of Lendlease, who were asked directly by Cllr King whether they had considered applying for grant funding:

 See video clip of committee meeting on youtube here.

In a lengthy reply, Lendlease did not disclose that the Mayor had in fact committed to fund Elephant Park, back in September 2018.

Elephant Park is the very first entry on a list of estate regeneration projects on the Mayor’s website, which have had funding approved since July 2018.

This gives rise to a number of questions:

  1. Why did Lendlease not say that they had received funding when the question was asked?
  2. Why were the committee members not told that Lendlease has received funding in the committee report?
  3. How much money has Lendlease received from the Mayor?
  4. Why has the affordable housing offer not been improved?

We suspect that the answer to this lies in the murky world of viability; Lendlease insisted in 2013 that only 9.4% of the new homes could be viably provided as affordable.

They repeated this at the planning committee meeting last week and would no doubt argue that any money they have received from the Mayor has gone to bridging the gap between what is viable and the 25% being delivered.

Whatever the merits of this argument (and we think it has none) it still leaves open the question of why Lendlease and the officers report did not disclose the grant funding to members.

There is a similarity here to the ongoing dispute about affordable housing in the shopping centre development. Developer Delancey claims that the £11.24m it is also receiving from the Mayor is being used to increase the amount of social rented housing. We showed previously how it was going to Delancey’s bottom line:

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35% Campaign update – Elephant Park – final phase, final windfall for Lendlease

Elephant Park – final phase, final windfall for Lendlease

Feb 21, 2020 12:00 am

Last phase of Heygate regeneration set for approval with increase in number of homes but no increase in affordable. -We blogged last year about the final phase (MP5 H7) of the Heygate regeneration.

Lendlease’s application for 424 new homes (15 social rent) in this final phase is now set to be approved by the Council’s planning committee on Monday.

If approved without a viability review it will seal an increase in the number of new homes beyond that approved by Southwark’s planning committee back in 2013, without any increase in the number of affordable homes. This will result in a total of 2,689 homes (220 more than approved in 2013) of which 92 will be social rent.

 Extract from the 2013 Outline application Committee report

This windfall gives Lendlease the revenue of 220 extra homes that were not included in the original viability assessment of the scheme, which was based on 2,469 units. This allowed Lendlease to build 25% instead of 35% affordable housing and to reduce the required amount of social rented homes to next to nothing. Taking account of the 220 extra homes could have improved both the viability of the whole scheme and the affordable housing offer.

Reviewing viability

We noted in our previous blog that Southwark has neglected to carry out any viability review. Monday’s planning committee report reiterates this, stating: “The council has no mechanism to insist on a viability review” (para 129)

However, this looks to be contradicted by the terms of the Regeneration Agreement between Southwark and Lendlease, which provides a mechanism for the affordable housing mix to be reviewed on an annual basis.

If these annual reviews had been taking place it should have been reflected in higher levels of social rented housing. The fact that the tenure mix hasn’t changed suggests that they haven’t.

Grant Funding

We also noted in our previous blogpost that the 2013 planning committee anticipated that the regeneration could benefit from public funding if it became available.

 Extract from the 2013 Outline application Committee report

This was in line with the Regeneration Agreement, which also obliged the parties to seek grant funding:

Such funding has been available since 2016 when Sadiq Khan announced a £4.6bn funding programme, but despite the 2013 planning committee’s intention and the Regeneration Agreement’s obligation, Lendlease has made no funding application.

Also, despite this clear contractual obligation, Southwark nonetheless states in Monday’s committee report for the final phase“There is no obligation on Lendlease to seek public funds.” (para 283)

Given the clear obligation on Lendlease to seek grant funding, we say that until Lendlease does so Southwark should reject this final phase application.

Southwark should also reject the application unless Lendlease commits to a viability review. There are a number of reasons why this is necessary. Not only was the original viability assessment based on fewer homes than the number actually being built, but also the free-market homes are being sold for twice Lendlease’s viability assessment estimate.

Another significant change to viability since the original assessment has been Lendlease’s recent decision to let, rather than sell homes in the later phases of the scheme.

Monday’s planning committee should also take account of Policy 3.12 of the Mayor’s London Plan, which says that “The maximum reasonable amount of affordable housing should be sought .. having regard to .. individual circumstances including development viability, {and} the availability of public subsidy.

The Elephant Park development lost Southwark 1,200 council homes. This final phase is Southwark Council’s last chance to (partially) redeem itself by insisting Lendlease abides by its obligations, reviews the viability of the scheme and applies for grant funding.

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Resident Involvement Review Update

Dear all,

I hope this finds you well. Further to Cllr Williams email below please see the following link where you can find the Resident Participation Cabinet report which was published today. You can find the report and appendices under item 8.

http://moderngov.southwark.gov.uk/ieListDocuments.aspx?CId=302&MId=6419&Ver=4

Southwark Resident Participation Framework

Appendix 1 Resident Involvement Consultation Findings

Appendix 2 Resident Participation Implementation timeline

Appendix 3 Areas map

Kind regards,

George Changua

Tenant & Homeowner Support Officer

Southwark Council || Communities Division || Housing & Modernisation

160 Tooley Street || 5th Floor || Hub 3 || SE1 2QH

T: 0207 525 3326 || E: george.changua@southwark.gov.uk || Website: www.southwark.gov.uk

www.southwark.gov.uk/mysouthwark For council services at your fingertips, register online.