An MP has described rent increases at AXA IM Alts’ Dolphin Square, SW1, as “some of the most morally disgusting behaviour I have ever seen from a corporate in 18 years as a public official in Westminster”.
Nickie Aiken, MP for the cities of London and Westminster, criticised the landlord of the 1,233-home residential block during a House of Commons discussion last week on the Renters (Reform) Bill, which could end the use of rent review clauses and only allow rents to increase once per year.
AXA IM Alts, which bought Dolphin Square in 2020, is carrying out a major refurbishment of the estate. However, tenants complained earlier this year about a significant decline in living standards since the acquisition. Tenants previously complained about a reduction in security and maintenance personnel, lifts not working, lack of consistent hot and cold water supply, and heating failures, with the heating not working in some flats.
Aiken said: “AXA Insurance, which now owns Dolphin Square in Pimlico in my constituency, is undergoing a major refurbishment of the estate – which is understandable – but it is now asking tenants, some who have been there for many years, to move out of their flats and move into another because it wants to refurbish them.
“But if they do move out and into another flat, their tenancy breaks, and they have to take a new tenancy and that includes a 40% increase in rent.
“Now I have really pushed AXA on this because I honestly think that such behaviour when somebody has lived in a flat for 5-8 years and is asked to move because of a refurbishment project into a similar flat, not a refurbished flat necessarily but a flat awaiting refurbishment, to be given a 40% rent increase and having to start a tenancy again is outrageous.
“This is some of the most morally disgusting behaviour I have ever seen from a corporate in 18 years as a public official in Westminster.”
A spokesperson for AXA IM Alts said: “We note the comments made by Nicola Aiken MP. We have committed to a significant investment into the refurbishment of this almost 100-year-old building. This includes a significant improvement in energy efficiency, increased quality of individual accommodation, modern functioning infrastructure as well as additional amenity and enhanced overall environment, all of which we are undertaking while preserving the important heritage of the asset.
“This will ultimately benefit all tenants and the wider community. We fully appreciate the disruption that the current refurbishment may be causing for tenants and have been doing our best to manage this through regular communication. With respect to rents, at Dolphin Square we have protected tenancies where rents are regulated and ASTs where we benchmark to market.”
The spokesperson said there were self-imposed caps on renewals for its assured shorthold tenancies, to +15% per annum. The average uplift stood at around 16.5% over the past 12 months. AXA IM Alts said in some cases there were “specific reasons”, including improving or upsizing individual flats “as a result of necessary relocation or conclusion of prior circumstances that provided rents materially below market, for example during Covid”.
“In these circumstances, we always give due consideration to personal circumstances of the resident, who is given a choice of options and, of course, we always act within the contractual terms of the lease agreed with the tenant,” said the spokesperson. “We will continue to work with residents, existing and new, and with community stakeholders to ensure we deliver on our commitment to fully upgrade Dolphin Square.”
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