I’d never heard of Ken Griffin before a week in which the hedge fund billionaire bought the most expensive home ever sold in the United States and then snapped up (as you do) what is thought to be the priciest home sold in Britain for a decade.
I use the words ‘houses’ and ‘home’ in a loose sense, of course. Because we are talking about penthouses, apartments and condos too. And because, despite spending $238m on a four-storey penthouse in a new skyscraper in New York and £95m on a London house near Buckingham Palace, it’s hard to see how he will spend much time living in either of them.
Griffin’s Citadel hedge fund is actually based in Chicago, where he already has two more homes. The most expensive ever sold in the city, a $59m four-storey penthouse, offers a place to crash after day at the office. Fitting it out could cost another $25m but if he needs somewhere in the meantime he also owns a whole floor of the Waldorf Astoria plus a two-storey penthouse in another skyscraper.
For weekends or holidays he can fly down to Florida, the state where he was born and has acquired a $230m portfolio of land and property in Palm Beach near President Trump’s Mar-a-Lago estate. One property (which cost $15m) will apparently be used as a guest house while some of the four others could be demolished to make way for a gargantuan beach house. That’s almost forgetting the $60m penthouse in Miami that he seemingly never moved into and has now put back on the market.
If he fancies a change of scene, he can nip over to Hawaii, where he bought one property for $11m in 2009 only to buy a second for $17m three years later.
I’m labouring the point here but it’s worth it on a few different levels, most obviously for what it reveals about the astonishing lives of the ultra-rich but also for what this extreme case says about our attitudes to housing and property and about what has happened since the financial crisis.Read the rest of this entry »
Originally published on January 23 on insidehousing.co.uk.
Shrinkflation made the headlines this week as government statisticians highlighted the way that food manufacturers reduce the size of their packets rather than put up the price of their products.
Most commonly seen in bread and cereals, it means you now get 10 Jaffa Cakes where you used to get 12.
But another news story got me wondering about whether the same thing could happen in housing.
‘Micro-homes could solve London’s housing crisis,’ said a BBC headline based on a new report from the Adam Smith Institute.
Originally posted on my blog for Inside Housing on October 22.
When England’s most high-profile local authority calls the behaviour of the country’s largest housing association ‘morally wrong’ you sit up and take notice.
Clashes between the local priorities of a council and the organisational ones of an association are nothing new of course but this week’s statement by the Royal Borough of Kensington and Chelsea (RBKC) seems different.
Clarion is in its sights over rejected proposals for the regeneration of the Sutton Estate in Chelsea.
Council leader Kim Taylor-Smith told a council meeting last week:
‘HAs in the borough are, in some cases turning away from their core purpose and in some cases becoming all but private developers.
‘You will all know I am talking about Clarion Housing, the owners of my local and cherished Sutton Estate which they wish to knock down the estate with a loss of affordable homes We stand shoulder to shoulder with local residents in opposing this
‘I think we all in the chamber are untied. This is wrong.’
Originally posted as a column for Inside Housing on November 8.
From ‘temporary’ homes that last for 19 years to families with young children living in the middle of an industrial estate, a Commons debate on Tuesday found MPs queuing up to relate horror stories from their constituencies.
Labour MP Siobhan McDonagh opened the debate about temporary accommodation with an eloquent and angry explanation of the situation facing 78,000 families and 120,000 children but she was joined by MPs from all parties in calling for urgent changes.
The stats about temporary accommodation are grimly familiar. Among them are a 66% increase in the number of children affected since 2010, 1,200 families with children housed in B&Bs beyond the six-week legal limit and a five-fold increase in families from London housed outside the capital since 2012.
All this has come at a cost of £3.5 bn over the last five years for accommodation that is stretching the definition of ‘temporary’ to breaking point.
Siobhan McDonagh said three quarters of families in temporary accommodation in London have been there for more than six months and one in 10 for more than five years. There are even cases in Camden and Harrow of families living in ‘temporary’ accommodation for 19 years.
A graphic illustration of that came from David Lammy, Labour MP for Tottenham, later in the debate:
‘One family in my constituency have been living in temporary accommodation for 14 years. Another family have been there for 17 years. That family have seen their children grow up in temporary accommodation—the only home that the children have ever known, from their first day at primary school to their first day at secondary school. Next year, the 18th birthday of the eldest child will be celebrated in this so-called temporary accommodation.’
Originally published as a column for Inside Housing on August 3.
If the Right to Buy has a birthplace it’s a terraced house at 39 Amersham Road in Harold Hill, near Romford in Essex.
True, the sale was the 12,000th rather than the first and 11 August, 1980 was not the actual birth date of the policy either.
However, both have come to symbolise the Right to Buy because this was the place and that was the day that Margaret Thatcher came for tea.
The former prime minister joined the Patterson family, who had bought their home for £8,315 after 18 years as tenants of the Greater London Council (GLC).
Two things came together to remind me of that photo opportunity this week: first, archive footage used in the film Dispossession (full review to follow soon); and second a good investigation by the local paper of hidden homelessness in the area.
Originally published as a column for Inside Housing on July 12.
How difficult should it be for Kensington and Chelsea to find new permanent homes for the families made homeless by the Grenfell Tower fire?
A month on from the disaster, new council leader Elizabeth Campbell promised on the Today programme this morning (listen from around 2:10:00) to build new council homes and buy existing ones.
So far 68 social rented homes have been reserved for the families at a new development in Kensington but they were always going to be affordable housing anyway, built under a Section 106 agreement and bought by the City of London Corporation.
Only 14 out of the 158 Grenfell families currently living in hotels have accepted offers of temporary accommodation as they wait for permanent homes.
Cllr Campbell, who is also the new cabinet member for housing and regeneration, gave a contrite but awkward interview in which she claimed (wrongly) that the Royal Borough would be the first in London to build new council homes and admitted (eventually) that she has never been inside one of the council’s tower blocks.
However, she did at least perform better than her predecessor as leader, Nick Paget-Brown, and another Tory councillor, Catherine Faulks, who made an embarrassing appearance on the same programme last week.
Originally posted on May 9 on Inside Edge 2, my blog for Inside Housing
The May elections have a common theme when it comes to housing: can the winners really do what they say?
From Sadiq Khan to Marvin Rees, from Nicola Sturgeon to Carwyn Jones and from council leaders all over England to the voters of St Ives, winning the elections last week was the easy bit. The hard work starts now.
I’ll start with the poll closest to me: the referendum in St Ives on a Neighbourhood Plan that will ban the building of new second homes that has brought national attention.
More than 80% of residents supported the plan last Thursday and it’s impossible not to sympathise. Around a quarter of the homes in St Ives are either second homes or holiday lets and the problem is even worse in other Cornish communities. That does not just price out locals it also means a lack of year-round residents that makes it hard to sustain vital services and infrastructure.