Families evacuated from Grenfell Tower are moving to a luxury block with penthouses worth millions. “It is crazy money”

Sixty-eight flats in £2 billion luxury complex in the centre of Kensington, one of London’s most desirable addresses, will be given to families evacuated from Grenfell Tower after the devastating fire.

This decision comes after Labour leader Jeremy Corbyn called for luxury empty properties in Kensington to be taken over by the Government to house victims.

The flats in the Kensington Row scheme, a mixture of one, two and three-bedroom flats, have been acquired by the City of London Corporation as part of the response to the tragedy, and handed to Kensington & Chelsea Council for social housing, Standard reports.

The deal was brokered by the Homes and Communities Agency on behalf of the government.

“We are identifying suitable properties in the local area to rehouse residents as quickly as possible, as well as offering support to local authorities to run checks on any high-rise buildings. We will do everything in our power to help those whose lives have been blighted by this horrendous fire and reassure those who live in similar buildings that their homes are safe.” said its chairman Sir Edward Lister.

The development is the second part of a £2 billion regeneration project called the Warwick Road Masterplan.

“An extraordinary gesture”

Two bedroom flats in the luxury complex are currently being advertised for up to £2.4 million, but it is reported that the City of London Corporation paid around £10 million for the flats thanks to an “extraordinary gesture” of goodwill by developer St Edward, a joint venture between the Berkeley Group and Prudential, in selling the properties at their cost price.

“We’ve got to start by finding each of them a home. Somewhere safe and supportive, close to their friends and the places they know, so they can start to rebuild their lives. We will work night and day to get these homes ready.” said Tony Pidgley, chairman of the Berkeley Group.

The new accommodation is expected to be completed by the end of July.

The families from Grenfell Tower will permanently live there. At the moment, 250 residents affected are being housed in hotels around the area.

“Our priority is to get everyone who has lost their home permanently rehoused locally as soon as possible, so that they can begin to rebuild their lives.” said Communities Secretary Sajid Javid.

The government has also provided additional funding to furnish the apartments, to ensure they are ready for people to move in.

“It is crazy money. The garage is full of Maseratis and Ferraris. But I think maybe the people here wouldn’t mind the empty flats being used – it would be a way of giving something back. There are a lot of empty flats here – it would be the right thing to do.” said a source at the development.

The current residents are complaining: “It will degrade things”

Residents of a luxury housing block are complaining that the arrival of Grenfell Tower survivors will lead to a fall in property prices, The Guardian reports.

Several residents of the luxury complex say that this move is unfair, as the new inhabitants “won’t even be paying the service charge”.

The complex features a gym, swimming pool and 24-hour concierge service, that will be off limits to Grenfell families.

“I’m very sad that people have lost their homes, but there are a lot of people here who have bought flats and will now see the values drop. It will degrade things. And it opens up a can of worms in the housing market.” said one of the residents.