The Mudcat Café TM
Thread #162290   Message #3862295
Posted By: DMcG
22-Jun-17 - 06:37 AM
Thread Name: BS: Labour wants to confiscate property
Subject: RE: BS: Labour wants to confiscate property

The other issue is the cost. Requisition is not confiscation, and compensation at market value would have to be paid. According to the Guardian the value of empty property in Kensington and Chelsea is around £644m. Owners might also be entitled to claim for other losses, and have their legal and professional costs paid.   Even if they were only taken temporarily the rental cost would be many thousands of pounds a week


I agree it would all be difficult to work out. That's partly why I think Jon Freeman's suggestion of preparing the groundwork now for the next disaster is interesting.

Compensation is more difficult. Certainly compensation would arise for damage and restoration of fair wear and tear. But I don't see how rental values come into it because these properties are not being rented out - if they were, the council or other body would just be renting them. Being compensated for loss of rent you were never charging seems odd to me.

But there is another benefit that seems to be being overlooked as well. By purchasing these flats the council continues to own them. So eventually they can be used a council housing more generally, or resold. Either way, there is a benefit to the council over and above the immediate crisis.