Gem House tenants face eviction after £12.6m sale to private landlord

Sixteen families in Gem House, Marylebone, face eviction after their social housing flats were sold to a private landlord for £12.6m. The new owner has demanded rents up to eight times higher than the previous social rent rates, leaving tenants with no option but to apply for homelessness rehousing.

The Banjak family, who live in Gem House with their three children, said they were asked to pay £6,850 per month, more than eight times their current rent of £793. They must leave by the end of August, with no guarantee of where they will be rehoused. Mrs Banjak told the Local Democracy Reporting Service (LDRS) that the uncertainty was causing distress for their children.

Council loses legal battle to block conversion

Westminster City Council attempted to block the conversion of the flats to private rentals but lost a Court of Appeal bid earlier this month. The council had argued that the properties should remain affordable under a Section 106 agreement, but the court ruled in favour of the new landlord, Gem House Limited.

The flats were sold after the original social housing provider, Kinsman, was deregistered in 2023 for breaching governance and financial viability standards. Kinsman was declared bankrupt, and its mortgagee sold the properties to Gem House Limited. The council said it launched legal action in 2024 to challenge the sale but was unsuccessful.

Tenants criticise council response

Tenants said the council had not provided direct housing offers, instead requiring them to reapply through the homelessness system. Mr Banjak, a former Transport for London bus driver who suffered a stroke, said the process was unnecessarily difficult. He told the LDRS: "The council has to do it more flexibly, not [make us] start from the very beginning to do another application."

Another tenant, Mahmoud, who relies on a nearby relative for care due to a disability, said he feared being rehoused outside the borough. His son, a university student, said the uncertainty had disrupted his studies. A third tenant, who asked to remain anonymous, described the experience as "quite traumatising" after two years of instability.

Council defends actions but offers no guarantees

Councillor Concia Albert, Labour’s Shadow Cabinet Member for Housing Services, criticised the Conservative-run council for failing to protect tenants. She said: "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."

Westminster City Council said it had acted in the best interests of the community by challenging the landlord’s decision. A spokesperson told the LDRS: "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." The council did not commit to providing direct housing offers.

What happens next

Tenants must submit homelessness applications to Westminster City Council, which has over 6,500 households on its housing register. The council has not confirmed whether it will prioritise Gem House residents or guarantee rehousing within the borough. Evictions are expected to begin at the end of August.