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A couple of years ago I lived in a little detached cottage on Barnes Common in Putney. The rent was about £1500 a month. It was owned by the primary school next door which was connected to the church opposite us. I'm sure they could have sold it for a lot of money but from their perspective it was an easy way to keep a bit of spending money trickling in which didn't effect school funding. I imagine having a big wedge of cash from selling assets might do.
Cheers all. I only moved to London when prices were starting off on their ludicrous phase so had forgotten about the cheap spells.
I'm a little bit surprised the council hasn't tried to sell them all off.