Tuesday, 2 November 2010
Kensington Housing Trust's April Fool Prankster was right: 'something' was missing
Catalyst Housing Group have announced they are to merge with Kensington Housing Trust and Fortunegate, for 'greater efficiency'; a bit of management and maintenance wouldn't have gone amiss.
Given their abysmal track record as a landlord and the state of their financial affairs this is no surprise to me. I have been monitoring their accounts and quite frankly they are shocking. Catalyst are mortgaged up to their necks and are servicing massive loans of nearly half a billion; they have received three-quarters of a billion in Social Housing Grant. They spend more on interest payments than they do on maintaining stock; they state they need to double their stock in three years to bring in £20m/year profit just to keep going.
KHT, a notoriously awful landlord, is selling off street properties (£2.5m/year) to subsidise interest payments. They are totally reliant for survival on Social Housing Grant (£139m 2009/10), which they will see no more of during this government. They have capital commitments of nearly £100m this year, all being paid by Catalyst; what a mess. It seems the April Fools prankster who turned their offices into a ‘crime scene’ had the inside story; we were the fools, for not understanding what it meant.
I have no idea what this means for Wornington Green, but frankly I think it unlikely this is the last we will hear of this; this reorganisation will not save enough to put them back in the black.’