To Tower Quay
30 March, 2020
Dear Tower Quay & Simpson House/Courthouse Lane Landlords,
We are facing a worldwide crisis. Many of us have had our incomes cut, lost jobs, had our hours reduced and lost freelance projects. The ongoing government measures mean that maintenance is not being carried out in our flats. We are trying to support each other, but need your help as well. We all need a roof over our heads at this time, and we appreciate that you need to continue paying staff and costs.
Because of this we'd like to propose two things:
1. A 20% reduction in rent payments while the pandemic is ongoing and maintenance is not being carried out.
2. That no one will be evicted for not paying rents during the pandemic. If a flat can't pay they'll inform you and we will agree a payment plan. We ask that you stand by these payment plans, and do not deny a fair renewal of contract, even after the end of the pandemic, as the economic effects will be long-lasting.
We are looking to find a constructive way forward that ensures both that you can cover your costs and tenants are able to fulfill their payment obligations, and we believe our proposal represents the best way to accomplish this. Please answer both points substantivly when replying.
I would ask you to read the attached Hackney Council guidance on protecting private renters by Cllr Sem Moema which asks you to "go beyond the government requirements".
We look forward to your answer and working with you productively on this crisis we all face together.
Yours faithfully,
The tenants of Simpson House, 2 Somerford Grove & Courthouse Lane
CC: Diane Abbott, MP; Shaklewell Councillor Michelle Gregory; Shaklewell Councillor Richard Lufkin; Mayor or Hackney, Philip Glanville; Councillor Sem Moema (Mayoral Advisor - Private Renting)
Reply from Tower Quay
30 March, 2020
Dear Tenants,
Thank you kindly for your email. We are currently in discussions with the landlord and shall revert as soon as we know more.
Kind Regards,
[Name Redacted] (MARLA)
Lettings Manager
Reply from Tower Quay
1 April, 2020
Dear Simpson House and St John’s Court tenants
Thank you for making contact. We have discussed your email with the landlord.
These are unprecedented, challenging and uncertain times for both tenants and landlords alike. As you are no doubt aware, the Chancellor has already set out a range of measures to support employees and the self-employed through the period of disruption caused by COVID-19. There measures have been put in place to ensure that people are in a position to pay their bills. The Coronavirus Job Retention Scheme allows employers to claim 80% of a furloughed employees monthly wage costs. It is not for the landlord to bear the 20% burden through this process.
The landlord also has its own ongoing financial commitments, together with the landlord’s own financial covenants with its bankers which need to be maintained. The landlord cannot simply walk away from these commitments.
We can assure you that the Landlord takes its responsibilities seriously and in order to assist those with exceptional needs it is not practical to apply a blanket approach for all tenants. The landlord recognises the need to work together. Those tenants that can pay in full should pay in full. Each case will therefore need to be reviewed on an individual basis.
General maintenance has been postponed to ensure the safety of the maintenance staff and tenants. The landlord will endeavour to carry out emergency work so that there is no reason not to have use of your flat.
The landlord is aware of the new regulations regarding evictions. We must emphasise that any concession regarding the rent, if granted, will be on a temporary basis and tenants will remain liable to pay the full amount including any concession, if granted, at a later date which will be agreed internally on a case by case basis.
Warmest Regards,
Tower Quay
To Tower Quay
1 April, 2020
Dear Tower Quay & Landlords,
Since we sent you the initial email on Monday we have joined with the other Tower Quay residents in Olympic House and now have 78 signatories.
This crisis concerns everyone and can't be dealt with individually. We need you to work with us as a group and as Hackney Council say go "beyond the government requirements" to keep everyone secure and safe during this pandemic.
Dianne Abbott's office, our local counsellors and the London Renters Union who we are CCing on all communication have expressed support and are following this case.
We will discus your response with the group and get back to you by Friday.
Yours faithfully,
The tenants of Olympic House, Simpson House, Courthouse Lane, St John's Court
Reply from Tower Quay
7 April, 2020
Dear Tenants,
Thank you for your email which has been discussed with the various landlords for each of the separate buildings that you are trying to represent.
In each case the landlords have provided us with the following responses.
As commercial landlords they do not speak directly with tenants. All communication is to be directly with us as their appointed representative / Managing Agent.
It is not the landlords concern if you, as an unrecognised body/representative, are unsatisfied with its response. As professional landlords they operate within the law and as per the recent guidelines set out by the government. They have however asked us to address each of your questions again to ensure there is no misunderstanding. It should be noted that these responses are on the basis that your requests are not considered to be reasonable considering the extreme financial measures that have been taken by the government to support those in need during this period.
1. No reductions in rent are agreed. Should any individual tenant be experiencing any financial difficulty as a result of COVID 19 then they should contact us directly so that their case can be considered individually. For reasons previously explained, it is not appropriate to apply sweeping changes to all tenants many of whom have very different circumstances.
2. The landlords will follow all government guidelines with regards to evictions during this period. For clarity, we will not be agreeing any payment plans with you, and as per the above all payment plans will only be discussed with individual tenants. Renewals will also be reviewed on a case by case basis as and when they arise at which time all factors both past and present will be taken into consideration.
For the avoidance of doubt, and to ensure that we do not commit any data protection breach, we will not be discussing any individual cases with you.
Please be advised that we will not be communicating with you (bearing in mind we don't even know who you are) any further on this matter as it is imperative that we spend our time dealing with individual tenant needs.
Kind regards
Tower Quay
To Tower Quay
15 April, 2020
Dear Landlord,
We were dismayed to receive your latest communication to us. At a time when the COVID-19 death toll has hit 110,000; when we are losing our jobs and struggling to pay our bills; and when the government has requested that landlords show ‘compassion’, your response was deeply out of touch. We know the crisis affects Tower Quay and their staff as well, and that we need to work together.
To answer your claim ‘we don’t even know who you are’: you do. We are the 103 signatories of the letter, representing the majority of your tenants in Somerford Grove, requesting a fair deal in this difficult time. All of our communications with you are composed collectively and agreed upon by consensus.
We are continuing to grow and organise through digital communication. You will have received messages supporting our letter from our local MP Diane Abbott and Hackney Mayor Phillip Glanville. In addition, we recently became members of the London Renters Union who will be supporting and backing us in this matter.
We are aware that, following our letter, you offered a 20% discount to certain tenants on the condition that they kept the agreement private. We are working together to support each other, and we will not be divided by demands for non-disclosure.
As you know, the ‘extreme financial measures to support those in need’ do not include support for renters; the furlough scheme only covers 80% of income; and freelancers are particularly vulnerable. We’ve surveyed the tenants and almost every flat has confirmed that they have lost income as a result of the crisis. At this time we need to prioritise our economic survival over your profit margins.
Our collective of tenants - alongside the 2800 members of the London Renters Union - are considering all forms of action available to us to settle this matter.
We hope you will reconsider your approach and agree to work constructively with us. We have made our request clear to you, and would be glad to enter into substantive dialogue over its implementation. Otherwise, we will take further action.
Best wishes,The tenants of Simpson House, Olympic House, St. John’s Court
Reply from Tower Quay
14 April, 2020
To whom it may concern,
To ensure that there is no confusion, can we please highlight that you are writing to Tower Quay, a Letting / Managing Agent, and not a Landlord. As per our previous email, however, we act for a number of Landlords, all of which we have been appointed to represent.
Although we have previously indicated that we will not discuss this matter further, we are prepared to write to you as a group one final time to ensure that there is no misunderstanding and to ensure that you are aware of all of the facts regarding the letting industry at this difficult time.
Both we and the Landlords that we represent are aware that the government have requested that Landlords show 'compassion' when dealing with Tenants, and where Tenants have contacted us directly we can assure you that this has been done. We can also confirm, however, that under no circumstances have any Tenants been offered discounted rents, with any concessions only being offered to meet the specific needs of a particular individual.
For the avoidance of doubt, however, and on the basis that you accept the Landlords position on evictions and renewals as you have not raised this again in your latest email, we wish to clarify the position on rental discounts that you continue to raise:
The Government has not indicated or implied that 'compassion' equates to rental discounts, and even if this were implied it would not be appropriate to apply this as a blanket discount across a whole building where Tenants have differing needs. Although we accept that a number of Tenants have been effected by COVID 19, there are also Tenants that have not been effected financially at all, and in some cases there are even Tenants that have benefitted from it as their workload has increased. On this basis it is clearly unreasonable to expect a Landlord to apply discounts across entire buildings, especially as Landlords continue to have financial commitments during this period that they have to meet. Despite what you may believe, Landlords are still liable for interest on loans during COVID 19, loans on buildings that you live in.
You appear to have determined that a 20% discount should be applied across the board although no justification has been given other than because maintenance isn’t being provided. This is of course incorrect as although minor repairs are not being carried out to avoid the risks associated with social distancing, all emergency maintenance works are still being undertaken. We can therefore only assume that you have determined the 20% discount requested as being the shortfall between the 80% furlough benefit being offered, and a normal salary (capped at £30k pa pro rata) and then simply assumed that your Landlord should cover the difference. Unfortunately, however, and despite this being completely unreasonable / unrealistic, your assumptions / calculations are also inaccurate. Assuming a salary of £36k pa (the average London salary), and applying a standard tax code, an individual can normally expect to take home circa £2,343pm compared to £1,935pm whilst being furloughed, a reduction of roughly £408, or 17%. This is of course before other deductions including, but not limited to reduced work travel, reduced work clothing, reduced lunches, cancelled holidays and reduced entertainment are taken into account, all of which will minimalize the impact on the reduction in income. Subsequently when all of this is taken into account, in most cases we believe the impact on disposable income will be minimal, and there is therefore no justification for any reduction in rent, especially considering that whilst Tenants are isolating the wear and tear in properties is increasing which will be at the cost of the Landlord. The same will also apply to the self-employed through the latest measures announced by the Government, and although we appreciate the timing of payments may be delayed, these individuals will obviously benefit from having the cash reserves to meet their tax liabilities for the 19/20 tax year that ended only last week which will be taken into account .
Subsequently we can only suggest that Tenants pay their rent when due, and if any Tenants are really struggling to meet their financial obligations that they contact our credit control team directly who will be happy to discuss the individuals personal circumstances and options available to them. If the rent is not paid as per the Tenancy Agreement, all the Landlords legal rights and remedies must be considered as strictly reserved.
Please feel free to discuss this with the your local MP, Mayor, and London Renters Union, as both we and our Landlords have been acting fairly and compassionately, and simply because we don't agree with your unrealistic / unreasonable demands doesn't make us villains. We are simply acting professionally, taking all factors into account, and are continuing to deal with a difficult situation at this difficult time.
Kind regards
Tower Quay
Reply from Tower Quay again (we sent nothing in between responses)
23 April, 2020
To whom it may concern,
We appreciate that we had previously indicated that we wouldn't communicate further on this matter, however, we have since become aware of the following important information:
1) We have been provided with a copy of your various WhatsApp groups that have been used to discuss your demands. From this it is evident that not all tenants require assistance and some were simply requesting a discount / supporting the demands for their personal financial gain. This is clearly inappropriate in the current circumstances when some individuals are genuinely suffering, and certainly does not provide any justification for property wide discounts. In reality this is exploitation by some tenants who are using what is a very difficult time for their own personal benefit.
2) The majority of tenants have paid their rent and have no arrears, with a number of those tenants subsequently being identified on the WhatsApp groups indicating that they would simply ask for a retrospective discount to be applied in the following month, as they had forgotten to make any reduction in the current months payment. This is not an indication of tenants requiring support, but again does indicate that tenants are trying to use the current unfortunate circumstances as an opportunity for personal gain.
3) A number of tenants within the WhatsApp groups have indicated that they work within sectors that have been unaffected, and there has been no impact on their income. Once again, this is clearly not justification for a landlord to apply blanket discounts across its property.
4) We have become aware that not all of the those listed below are named in the legal tenancies as tenants for the buildings referred to. For this reason we are unsure why these individuals have been listed in your email.
For the reasons set out above our position regarding your rental discount demands remain unchanged.
As per our previous email, however, should any individual tenants genuinely be experiencing personal financial difficulty then we urge them to make contact with us to discuss their individual needs.
Please be advised that based on the information that has been provided to us as detailed above this has now had a major impact on our business and particularly our staff who have had to endure threatening and abusive phone calls through no fault of their own. This is clearly unacceptable and has left us with no option but to report these calls to the police.
Kind regards
Tower Quay
To Tower Quay
4 May, 2020
CC: Diane Abbott, MP; Shaklewell Councillor Michelle Gregory; Shaklewell Councillor Richard Lufkin; Mayor of Hackney, Philip Glanville; Councillor Sem Moema (Mayoral Advisor - Private Renting); London Renters Union; Kevin Thompson (Head of Hackney Private Sector Housing)
Dear Tower Quay,
We are writing in response to your emails dated 14 April and 23 April 2020.
As a group, we are working to achieve three common aims, which have been developed and agreed upon through group consensus. We are asking for no evictions, fair rent, and no retaliation. A detailed list of how we believe this can be achieved is attached as Appendix C.
We note that despite your insistence that you will work ‘on an individual basis’ with tenants who have been financially hit by the pandemic, you have told tenants who have lost their income that you 'have been instructed by the landlord that no discounts on rent are permitted'. We appreciate that Tower Quay has limited flexibility as you are instructed by the landlord with regards to the matters in concern.
As the Guardian and an investigation by Hackney Council have made clear, the landlords for all of the flats are one of: Simpson House 3 Limited, Reverie Estates SR Limited, and Somerford Assets 3 Limited. All of these companies have the same directors, same address and are ultimately majority owned by Yiannakis Theophani Christodoulou.
We therefore believe that to find a way forward, we must discuss our concerns directly with John Christodoulou or a representative (from here on, the landlord) who has the power to make substantial decisions regarding rent amounts and contract terms.
In that spirit, we would like to invite the landlord to meet group representatives via Zoom, to discuss our position. An agenda and meeting date would be agreed in advance, and we would be pleased to work with you as the landlord’s representatives on that. We hope that the landlord will see this invitation as a move forward and will accept it in the good faith in which it is offered.
We were sorry to read your reports of threatening and abusive phone calls to your staff. No one should feel unsafe in their working life, and we condemn such action without reservation. While we do not believe that anyone in our group has been involved in such behaviour, we have reiterated the need for respect in dealing with your team.
However, we wish also to express our concern regarding what appears to be a deliberate programme of surveillance and intimidation that has been directed at tenants. We have kept detailed records of these incidents and will continue to do so. A summary is provided in Appendix A.
As tenants we have every right to communicate with one another and to generate constructive solutions to the problems we face during the crisis. We deplore what appears to be a calculated attempt to silence discussion and cooperation, and a clear impingement of our right to quiet enjoyment of our rented homes. It must cease.
Finally, we wish to note the widespread public and political interest in our case. We will continue to exercise our right to engage with our supporters in the media, parliament and social media as members of the London Renters Union. As you likely know from your surveillance, our participation level is growing to include the majority of the building, and goodwill is beginning to sour.
We hope we can settle this case swiftly and amicably – and urge a move to dialogue to find a mutually acceptable way forward. Can you help us accomplish this?
Best wishes,
The Residents Association and the London Renters Union
Appendix A: Examples of harassment and intimidation experienced by residents
The number of security guards at Simpson House and Olympic House has been increased since Friday 24 April. Security staff have been patrolling the building and balcony. As there has been no increase in reports of criminal activity in the building to explain this expanded security presence, we conclude that it is an attempt to intimidate and monitor the activities of tenants.
There have been several instances where Tower Quay security guards have been using mobile phones to surveil tenants including:
On 25 April 2020, at approximately 5.45pm, one tenant was covertly filmed as he walked down the corridors of Olympic House. When challenged, the guard ran away.
On 27 April 2020, at approximately 5.30pm, a tenant was filmed by a security guard on the communal balcony. When challenged, the guard confirmed that he had been asked to report to Tower Quay on the activities of residents.
On 27 April 2020, at approximately 6.30pm, a tenant was photographed as he waited at the entrance of Simpson House.
On 27 April 2020, there was a maintenance person monitoring and updating the CCTV system in Simpson House. When asked, he acknowledged that he was instructed to do this. Tower Quay did not offer to help investigate via CCTV footage when numerous residents reported people breaking in and stealing post and bicycles in 2018 and 2019. This suggests that the purpose of the CCTV is to surveill residents rather than offer assistance in matters of security.
For clarity, it is to be noted that we do not intend this as criticism of any individual security guard, all of whom we have found to be decent and likeable. Our criticism is solely aimed at those who have repurposed this staff from providing for our security to maintaining an obtrusive presence and surveilling residents in the building.
On 21 April 2020, The Guardian website published an article discussing our case which named Tower Quay. On that evening at approximately 6.45pm a resident answered a telephone call from a private number in which she was addressed by name, informed that she was speaking to the landlord’s solicitor, and told that she would be ‘held liable for damage to the flat or the landlord’s reputation’. The caller then hung up without identifying himself. Three other residents received calls from a private number between 6pm and 7pm that evening which they did not answer. These calls – and we note all were made to women tenants – were distressing and intimidating.
At least one member of Tower Quay staff has joined the tenants WhatsApp group without identifying themselves as a non-tenant. We have a record of this individual’s name and telephone number. Tower Quay have confirmed in correspondence to The Guardian, and with us, that they have received screenshots of private conversations held on this group. These screenshots have also been used to identify and correspond with members of this WhatsApp group. We believe that this amounts to obtaining and misusing private information and protected personal data.
On 24 April 2020, an individual claiming to be an anonymous tenant set up a WhatsApp group called ‘Tower Quay Residents 2’ and added numerous tenants to this group. In this group, they claimed that they had ‘received a strange call from a withheld number’ claiming that ‘Marc isn’t a legal tenant … and that Jordan and Esteban have paid all their rent in full’. As this information would be available only to Tower Quay, we conclude that either this individual was a member of Tower Quay staff, or that they were passed private and protected data from Tower Quay regarding their tenants.
We are aware, as reported by Leasehold Knowledge Partnership, that residents at Canary Riverside, where John Christodoulou is a freeholder, were previously ‘sent anonymous letters discrediting [their] residents’ association’.
On 27 April 2020, several tenants received a solicitor’s letter threatening legal action if they continued organising as part of the tenants group.
Taken together, we believe that these examples, which occurred over a period of a little over a week, constitute a coordinated and targeted programme of intimidation and harassment. We will continue to document, record and publicise further instances of such behaviour.
Appendix B: Media coverage
The Guardian - Tenants told to use lunch and holiday savings to pay full rent - 21 April 2020 - Aamna Mohdin
The Daily Mail - Tenants ask for 20% rent cut on east London flats but landlord refuses because they are saving cash on holidays, lunches, travel and clothes - 22 April 2020 - Sebastian Murphy-Bates and Amie Gordon
The Independent - Tenants who asked London property company for rent reduction ‘told to use holiday and lunch money’ - 22 April 2020 - Ben Chapman
Metro - Estate agent tells tenants to use holiday money and savings to pay rent - 22 April 2020 - Faye Brown
The Negotiator - Lettings agency criticised over ‘insensitive’ remarks to tenants about rent reductions - 23 April 2020 - Nigel Lewis
Hackney Gazette - Private tenants in Stoke Newington threaten rent strike as fears of mass evictions grow - 24 April 2020 - Sam Gelder
Vice - Worst Opinion Of the Week: Use Your 'Lunch Savings' to Pay Rent - 24 April 2020 - NEO
Vice - Stories of Nightmare Landlords During Coronavirus - 28 April 2020 - Ruby Lott-Lavigna
Hackney Gazette - Private tenants in Stoke Newington threatened with legal action over rent strike plans - 30 April 2020 - Sam Gelder
Tweet from the Mayor of London, Sadiq Khan, about our case - https://twitter.com/MayorofLondon/status/1253300511983521793
Appendix C: Our requests
1. No Evictions
a. Tenants should not lose their homes - no evictions during 2020
2. Fair Rent
a. 20% reduction in rent payments through 2020
b. Individual tenants should not be forced to pay more than their equal share of the household rent. - If flatmates move out during coronavirus the remaining tenants should not be held liable for their rent
c. No one should be forced into debt in order to pay rent - tenants who can’t afford rent after the 20% discount will present their financial circumstances, in coordination with the residents association, to the landlord and reach an agreement on a sustainable rent payment of no more than 30% of their net income
3. No Retaliation
a. Guaranteed contract renewals with no rent increase until the end of 2021
b. No late payment fees should be charged in 2020
Reply from Tower Quay
7 May, 2020
To whom it may concern,
Thank you for your email. Although you have predominately raised the same points / demands which we have previously addressed, and the is position unchanged, we will take this opportunity to address some of the other items you have raised.
With regards to your comment regarding discounting rents this is correct. No landlord for whom we act has indicated that they are or would be in a position to meet any of your demands, and neither are they under any obligation to do so. The landlords to which you refer to specifically have, however, offered assistance to help tenants facing financial difficulty by way of partial rent deferrals (effectively offering interest free, unsecure loans) in a genuine attempt to help those requiring it. Due to the landlords’ own contractual obligations, which like tenants they have to meet, they are not in a position to offer anything further
As you feel that private renters are not receiving enough support can we please suggest that you take this up with your local MP and have them bring it up in Parliament to see if the Government can provide private renters with any further assistance to help them meet their contractual obligations/demands, or at least step in and cover any of their short term financial obligations. For the avoidance of doubt, however, this is not the responsibility of either us as a letting agent, or any of our landlords whom have all been following the published guidelines and are operating within the law.
We are sorry the hear that you feel you may have been subject to any form of harassment or intimidation which is clearly unacceptable and we do not condone in anyway. We also thank you for your comments regarding our staff. With regards to the specific points you have raised, we hope that the following points will address some of your concerns:
· As a letting agent we are not involved with any operational matters including security and CCTV at any building. We are therefore not in a position to be able to provide access to such information as CCTV footage , and we find it strange that any security guard would make any reference to us. Despite not being involved with this, we are of course pleased that you have found the security that has been deployed at the property to be both ‘decent and likeable’. This of course implies that they are not intimidating and subsequently unlikely to be harassing you.
· We have been advised that security at the property has been increased and CCTV enhanced by building management as a result of an increase in unknown intruders at the building in recent weeks (probably resulting from media coverage), and also due to a number of tenants accessing the roof during lockdown (which we have previously emailed tenants about). All security measures were therefore improved to protect both tenants and the building, and not for harassment or intimidation purposes as you are implying. It is also good to know that there has been no increase in criminal activity at the property which proves the measures implemented have been successful.
· We are not aware of any telephone calls that have been made to tenants with the exception of calls made by our own credit control department which are undertaken in a professional manner. We do, however, find it strange that anyone would receive a telephone call from a solicitor who failed to identify themselves. For the avoidance of doubt, we can assure you that this does not involve us.
· As you are aware we have been provided with copies of one of your WhatsApp group messages. We can, however, confirm that we do not have any member of staff in your WhatsApp group and it is our understanding that it is not possible to access any WhatsApp group unless an individual is invited to do so by the administrator. We are also not aware of any reference in your WhatsApp group to the conversation being private and confidential so on this basis we have no reason to believe that the information is privileged. We are not aware of the WhatsApp group ‘Tower Quay Residents 2’ so are unable to comment on this. On the basis that the conversation on this second WhatsApp is also not private and confidential, if you would like to provide us with a copy of what was said then we will of course look into this.
· We are unable to comment on any ongoing legal proceedings.
We hope that this information is useful to you and in the meantime we would like to thank all of the tenants who have already paid their May rent in full.
Kind regards
Tower Quay
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