Tenants face 'impossible choices' after rent hike

Tenants on a south London housing estate face either financial ruin or losing their homes, Southwark Council's leader has said.

Residents on Bermondsey's St James Estate face Section 21 "no-fault" eviction notices and rent hikes of up to £500 a month following BMR Group's acquisition of the properties.

In a letter to Freshview, which manages the estate for BMR, councillor James McAsh urged the firm to drop all eviction proceedings and offer "realistic" rental terms before Friday's deadline leaves residents with "an impossible choice".

Freshview said rents were previously "substantially below" market value, adding that Section 21 notices were served "as a safeguard".

The decisions have left long-standing tenants struggling with uncertainty and the threat of displacement.

Mae Oroszlany, who has lived on the estate for almost 20 years with her husband, described the situation as "constant pressure" after receiving a Section 21 notice just hours before a law change on 1 May banned their use under the Renters Rights Act.

She said the area is "perfect" with an "amazing community" who she praised for coming together to form a tenants' association to challenge their landlord.

"A lot of people just felt such a relief that they can actually talk to their next-door neighbour... finally somebody's listening to me," Oroszlany said.

Another resident, Mary Knight, who has lived on the estate since 2003, said she faced a £524 monthly rent increase that would have raised her payments from £1,376 to £1,900 for her two-bedroom house.

"It was a bit of an eye-opener. I suddenly realised that I was potentially being made homeless because I would not have been able to afford that."

Knight, a mother of two, added that navigating the legal framework without support was overwhelming.

"There's so many times that I just wanted to stop," she said.

"But I can't stop, because to go and find somewhere else to live, you now have to have something like £50,000... or a guarantor."

David Watson, Southwark Council's executive member for community safety and engagement, confirmed that while the landlord acted legally, the timing was "morally questionable".

"Unfortunately, the landlord's actions are legal," Watson said. "They imposed these notices the day before the government changed the law in order to ban no-fault evictions."

Asha Garway, secretary of the St James' Tenants Association, accused the landlord of seeking to turn family homes into houses in multiple occupation (HMOs) to boost profits.

"They can turn a three-bedroom property into six to eight-bedroom properties... doubling their profit and kicking families out," Garway said.

Freshview's spokesperson said that while individual properties were periodically reviewed, there was "no proposal to convert the estate as a whole into HMOs".

The spokesperson added that a review after BMR Group bought the estate found a "significant number" of homes were being rented at "substantially below" market rates.

They said recent First-tier Tribunal rulings had confirmed its proposed increases reflected market rental values and that any rent rises were not being enforced while tribunal cases remained ongoing.

Renewal agreements had been offered in 20 of the 32 remaining Section 21 cases after discussions with tenants, with rents below current market value, the spokesperson said.

They said the remaining cases mainly involved tenants with significant rent arrears or other individual circumstances.

The company added it intended to continue investing in the estate and work with residents and Southwark Council to secure its long-term future.

The BBC approached BMR Group on several occasions for comment.

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