Tower Quay, a letting agent managing 170 flats in Somerford Grove, has come under scrutiny for denying tenants’ requests for a 20% rent reduction during the financial difficulties caused by the global pandemic. The residents’ appeal was dismissed because it was deemed “unreasonable” and “unrealistic.” Tower Quay suggested tenants might offset loss of income by cutting discretionary spending on vacations, leisure, excursions, apparel and going out to lunch.
The residents wanted joint negotiations, but could only do so as their joint tenancy association. Tower Quay rejected this strategy and instead decided to respond to the needs of each tenant through bespoke negotiations. One tenant was granted a one-time 20% rent cut during certain months. Then, they learned that they will need to pay full rent and an additional 20% in July and August to compensate for it.
Kieran Kirkwood, spokesperson for the London Renters Union, condemned Tower Quay’s behavior. He was moved to write by their claim that tenants would benefit from saving on lunch and holidays while the world is engulfed in a pandemic.
“Tower Quay’s suggestion that their tenants could be saving money on lunch and holidays in the midst of a global pandemic beggars belief. Many in the block, like renters everywhere, are seriously struggling to make ends meet.” – Kieran Kirkwood
Tower Quay provides professional property management services for a number of large corporate landlords. Some examples of these are Simpson House 3, Reverie Estates SR Limited, and Somerford Assets 3. Yet none of these landlords are people — they’re corporations with fiduciary, profit-driven responsibilities. Somerford Assets 3 is described as the freeholder for several residential buildings at Olympic House on Somerford Grove. Windermere Holdings Overseas SA, a British Virgin Island-registered company, acts as the leaseholder for the international group of about a dozen tenants. Many of these tenants have applied for emergency rent relief.
A spokesperson for Tower Quay defended their approach by emphasizing that concessions to all tenants were not feasible without governmental support for landlords.
“It is also not feasible for a single landlord to simply offer all concessions to all tenants whilst there is no support being offered by the government to landlords to assist this.” – Tower Quay spokesperson
The spokesperson said that supported residents had been unable to keep up with their rental payments.
“Based on discussions with other tenants we believe, in good faith, that these comments are true.” – Tower Quay spokesperson
Marc Sutton, a tenant representative, explained the rationale behind the collective request for a 20% reduction, pointing out that many residents are freelancers or work multiple gig jobs, therefore struggling with loss of work.
“The letter was asking the landlords to work with us so we can keep as many people paying money as possible, even if it was at a reduced rate. We asked 20% for everyone because it seemed like almost everyone was losing work. Many residents are freelancers or doing multiple jobs in gig work.” – Marc Sutton
More aggravation was given by residents who claimed to be intimidated by Tower Quay’s conditions. Patrick McDowell shared about a reentry clause in his contract. He continued, it made him scared to walk through the building and talk about his whittled-down rent with neighbors.
“There was a clause in that agreement that said it was void if I told anybody else in the building about it.” – Patrick Mcdowell
One anonymous affected tenant expressed frustration at the letting agent’s inability to offer flexibility over future employment prospects.
“I don’t know where they think I’m going to find a job in three months. Nobody is hiring. I just can’t believe they’re not willing to budge just an inch to try and help us out.” – Anonymous tenant