The New Era housing estate scandal in Hoxton, east London, highlighted by Aditya Chakrabortty, tells a poignant and tragic story about how Victorian philanthropic ideals has been transformed into commercial assets in play in the international market with not a shred of concern about the human consequences. Arthur Barsht, the man who built this 93-flat estate, must be squirming in his grave. It was preserved for more than 80 years by the Lever family who ran the estate as a place where low-income workers in teaching, health and construction could live near where they worked.

Now the grandson of the founder, who lives in a 5-bedroom detached house in Northwood, Middlesex, has announced the family is to sell up to an American private equity company which intends to quadruple the £600 a month rents for a 2-bed flat to £2,400. The US company was assisted in the takeover of the estate by Richard Benyon, the Tory MP whose multimillion-pound family estate in extensive parkland near London was a partner to the deal. None of the tenants will remotely be able to afford the new sky-high rents and they will all be evicted before Christmas. Welcome to Cameronian capitalism. Continue reading →