Social housing tenants in Gem House, Marylebone, are facing homelessness after a council blunder led to the sale of their flats to a private landlord, who now demands rents up to £6,850 per month—eight times higher than their current social rent. Westminster City Council has told the affected residents, many of whom have spent years in temporary accommodation, that they must make a new homelessness application to be rehoused by the local authority.
Families face eviction with no secure rehousing plan
Mr and Mrs Banjak, who live in Gem House with their three children, claim they have been asked to pay £6,850 per month—more than eight times higher than their current social rent of £793. Unable to pay, the family is now set to be evicted at the end of August pending a legal case. The council has asked them to make a homelessness application, which they say means they may not find out where they are moving until a few days before the eviction date.
“It's very, very horrible, especially because we don't know where we are going. This is the main issue,” Mrs Banjak told the Local Democracy Reporting Service (LDRS). “They left us with no time. For example, if they had time to tell us the address, we could move in peace. But, we are just waiting. We don't know where we are going.”
Legal loophole and court ruling allow market-rate rents
The 16 flats were sold to Gem House Limited due to a legal loophole within the council’s original agreement with the site developer. Westminster City Council launched a legal claim to try and stop the new landlord from converting the social homes to private rentals. Earlier this month, the Court of Appeal rejected the council’s bid, which means the new landlord can now let the properties out at market rates, which for Marylebone are eye-watering.
Mahmoud, a 60-year-old disabled father living in the building with his two children, is worried the family may be rehoused in a different borough. He relies on a relative who lives nearby to help with his care needs. “We’re worried about becoming homeless,” he said, adding: “I thought this was my dream home - my home for life.” His son, who is studying at university, said that the uncertainty has greatly affected his studies. “It’s a game and we are in the middle of the cross fire,” he said.
Council urged to take responsibility for rehousing
Councillor Concia Albert, Labour’s Shadow Cabinet Member for Housing Services, said: “The people living here are not private tenants who found their homes on the open market. They were placed in these flats by Westminster Council on the understanding that these were affordable homes. Westminster Conservatives must now take responsibility for the consequences of their own contract and ensure every affected resident is rehoused promptly in suitable, secure accommodation within the borough. These people did everything that was asked of them and should not lose their homes because of a mistake that had nothing to do with them.”
In a statement to the LDRS, Westminster City Council did not commit to providing direct offers to affected residents. A spokesperson said: "Westminster faces significant demand for affordable home and there are more than 6,500 households currently on the housing register. We commenced legal action against the landlord of Gem House in 2024 and challenged the landlord’s decision to abandon the original Section 106 agreement, believing that it was in the best interests of the community for these properties to remain affordable homes. We recognise that this is an unsettling time for residents and we continue to work closely with the affected households - providing advice and support with their housing options."
