London council to receive under £300,000 for five blocks transferred to struck-off airspace developer

The company has Mr Gold listed as director, and the developer later submitted plans to build a two-storey extension with nine flats on its roof. The plans were refused by the council in 2023, and a subsequent appeal to the planning inspectorate was dismissed.

However, a rooftop scheme has been approved at Stafford Cripps House in Bethnal Green, which was sold in April 2024 for £40,700 to a private limited company, 1-9 Stafford Cripps House Ltd.

According to the FOI, the council will also receive £72,000 when the sale completes at Tomlinson Close in Shoreditch, £57,000 for a block in Stepney Green and £45,600 for Caxton Grove in Bow. 

Companies House documents show that all three of these are being sold to companies with Mr Gold listed as director.

Asked to respond, Mr Gold told Inside Housing it was wrong to suggest the council was transferring any freeholds to him, and that the participating leaseholders are the company shareholders.

He said: “Shareholders have the right to act as directors and, in at least two of the buildings, are in the process of being appointed to the board.

“My powers in these circumstances are limited to matters relating to the development works. The company’s members have full control over the management of their building.”

Inside Housing reported in November how local MP Rushanara Ali attempted to stop the transfer of Tomlinson Close, just off Brick Lane. 

The MP for Bethnal Green and Stepney had written to Stephen Halsey, chief executive of Tower Hamlets Council, and housing minister Matthew Pennycook to flag concerns over the sale.

At Tomlinson Close, Mr Gold entered into an agreement with leaseholders in 2020 that set out plans for a speculative “airspace” development including cash incentives of £500 and a further payment of £20,000 on “completion of any rooftop development works”.

The agreement stated that a Isle of Man-based company called Langness H1 Ltd, trading under the name Liberty Estates, would loan the residents’ company money to purchase the property and to pay all costs and fees associated with the purchase.

On completion, the residents’ company would repay Liberty Estates by granting a 999-year lease over the roof and airspace above the block. This lease would give the company the right to develop the airspace to add flats, and each new flat would gain a share in the freehold company.

Once leaseholders agreed, Mr Gold, as director of the new limited company, served a Section 13 notice to the council under the Leasehold Reform, Housing and Urban Development Act 1993.

The sale was due to be completed last November but, according to the council, has still not gone through.

Last autumn, Tower Hamlets’ mayor changed its scheme of delegation, meaning that any collective enfranchisement disposals will require direct sign-off, and cannot be carried out by officers. 

A Tower Hamlets Council spokesperson said: “Transfers of Armsby House and Stafford Cripps House were completed as per the conditions of the Leasehold Reform, Housing and Urban Development Act 1993.”