Croydon (Parliament Politics Magazine) – Croydon Mayor Jason Perry’s council forced to withdraw Heathfield House from auction, marking the latest U-turn for cash-strapped authority.
At a reference price of £1 million, Perry was proposing a 125-year lease on the Grade II-listed Italianate Victorian villa at the summit of Gravel Hill, which had once been the residence of entrepreneur Raymond Riesco.
According to some real estate specialists, the valuation barely represented one-third, if not less, of the house’s actual value. It included twelve bedrooms, eight reception rooms, and three bathrooms.
And after Perry’s forced change of plan over the closure of the Croydon Carers’ Centre on George Street, this is the second time in a few weeks that a public protest and petition have put the Tory Mayor in a “reverse ferret.”
A petition against the proposed sale of Heathfield House has amassed over 2,000 signatures. For a petition to be discussed by the entire council in Town Hall, 1,000 signatures are needed.
The upscale real estate agency Savills, who were provided with the details to promote before the sale, reported today that Heathfield House had been taken off the auction block.
“Heathfield House has been withdrawn from sale by its owners, Croydon Council,”
a Savills exec said.
“Any further information will have to come from Croydon Council.”
A request for a statement regarding the auction’s change of plan was not answered by Mayor Perry or the Croydon Council press office.
In order to save money on security guards and post-squatter repairs, the property was transformed into 17 rooms for “guardians” last year.
The financially constrained Croydon Council is not getting any revenue at all from converting Heathfield House into a home of multiple occupation (HMO), according to a response to a Freedom of Information request.
Renting out the rooms in the council-owned building, which has great views of the fields towards New Addington and is conveniently located near the Gravel Hill tram stop for the daily commute into Croydon and beyond, is expected to bring in at least £10,000 a month for the commercial company Lowe, which is managing the tenants at Heathfield House.
Perry’s Tory colleagues at the Town Hall attempted to argue that Savills were marketing Heathfield House as a “mistake” after reading a report from last month.
The council attempted to argue that putting the property up for a 125-year lease was not selling it as they frantically tried to piece together some sort of cohesive, or convincing, narrative.
Last month’s council statement said:
“With the current financial pressures we have, we need to optimise the use of council-owned properties. As part of our Asset Strategy, we have been identifying opportunities to lease spaces which can generate income and reduce running costs.
This is essential to help the council become financially stable, so we can continue to invest in vital services.”
Around the same time, Perry’s Council received a record £136 million capitalization directive from the government, which enabled it to take out additional loans against the sale of capital assets.
The latest chaos, according to Katharine Street sources, can be traced back to the desk of a man who calls himself Huw Rhys Lewis BSc, BArch, MSc, MRIBA, MRICS, MAPM.
He is allegedly in charge of the council’s “commercial investment and capital” and the director of the council, who is well-known for threatening to sue a charity that provides food for the homeless in Queen’s Gardens.
Without bothering to apply for a license in advance for a home of multiple occupancy (HMO) or obtain planning approval, Huw Rhys Lewis (BSc, BArch, MSc, MRIBA, MRICS, MAPM) converted Heathfield home into an HMO.
To guarantee that the property stays in public ownership, the Heathfield petition asks for a meaningful interaction with the community.
The petitioners draw attention to Heathfield’s “significant opportunities for redevelopment” as a result of the Savills details, as well as the total lack of public consultation over the building’s and the grounds’ future.
“Any sale of this site raises serious legal and ethical concerns and sets a dangerous precedent for public, historic and green spaces in the borough,”
the petition states.
“Rather than exploring sustainable community-led options, the council has engaged in a pattern of exclusion and dishonesty, choosing opaque processes and private interests over public benefit.
Rather than recognising Heathfield as the gem in its crown, Croydon Council has treated it like a thorn in its side.”
Natasha Irons, the Labour MP for Croydon East and a former councillor from Merton, lent her support to those who opposed the sale of Heathfield House.
However, Irons’ letter to Mayor Perry seemed ignorant and restated presumptions that Heathfield is somehow covered by a protective covenant.
It isn’t; Lloyds broker Riesco and his family were allowed to live there for free until his death in 1964 when the home was sold to Croydon Corporation soon after World War II.
A significant portion of Raymond Riesco’s China porcelain collection was flogged off by Perry and his Tory friends twelve years ago, despite the fact that it was entrusted to the people of Croydon.
What are the key issues surrounding Heathfield House?
The public was outraged when Savills first offered Heathfield House for sale with a £1 million recommended price. After objections, the council declared it would instead provide a 125-year lease, saying it was “marketing” the land to make money rather than selling it.
Due to worries about the loss of public assets and the possibility of redevelopment that would detract from the area’s character, the community has voiced strong resistance to any kind of disposal. More than 1,000 people signed a petition for the mansion to stay in public ownership.
Heathfield House can only be used for non-commercial activities due to legal protections. Given that it might establish a precedent for other public areas in Croydon, the sale or lease presents significant ethical and legal questions.