St Michael’s Gate e-mail reveals fresh insight on

PT FOI request shows negotiations between city council and housing firm to move homeless people into estate where tenants are being evicted

Acompany which is evicting dozens of families at St Michael’s Gate so the city council can move in its homeless people tried to increase the council’s rental costs despite having already agreed a deal.

Newly released emails following a Peterborough Telegraph Freedom of Information request shows Stef & Philips, one of two firms behind the eviction of a number of tenants from74homes, asked the council to bump up the money it should pay from£966,338 to £983,675 per year.

The request came on October 25, more than three weeks after the council had published a decision notice on its website stating it would rent the properties.

Anemailfrom a Stef & Philips director, whose name has been redacted, states: “May a [sic] suggest a small change to the nightly rates to compensate for the loss of rent.”

This was due to the council reducing the number of properties it wouldleasefrom them.

The request, though, was rebuffed by the council. In an email on October 27 Oliver Hayward, the council’s assistant director: people commissioning and commercial operations, wrote back: “The position the council finds itself in following quite a protracted, but necessary, decision making processisthatwe are able to spend with your organisation up to [EMAIL CONTENT REDACTED] per annum as previously agreed.

“Any price increase will need to go back through the process as it is treated asanew decision, and given the interest around this matter there is no guarantee that the decision will be given. I would request that we hold prices as we previously agreed.”

The published deal on the council’s website was for the 74 properties to be converted into 98, which the council would lease, but the authority has confirmed that this number has now been reduced to 88.

This is from lowering the number of Houses of Multiple Occupation to four (which now account for 20 properties)and because Stef & Philips has removed two long-term tenancies at the estate from the lease.

A council spokeswoman said that as a result of the changes, its annual lease has dropped slightly to £966,151 with the vast majority refunded to the councilthrough housingbenefit payments from government.

The rates on leasing the properties has, though, been increased by approximately 16p per bedroom per day.

The spokeswoman said the rate paid still “reflects good value” and is “far less” than putting homeless people in hotels.

The PT’s FOI also reveals that while negotiations were ongoing over the St Michael’s Gateproperties, Stef & Philips asked to extend the council’s lease from two years to five years. An email from a Stef & Philips director gives nine reasons for the request, oneof which is that the properties it is leasing the council are the first of “many more we are willing to provide”.

The council l ast week said it was not aware of Stef & Philips utilising any more properties in the city.

Eventually, a three-year deal wasreached with a break clause after the second year.

The l atest t ranche of emails have been released by

“I request that we hold prices as we previously agreed.” Council officer “Our impression is the media furore has died down.” Stef & Philips