Land sale row blocks homes
Feb 8 2008 by Liz Hands, The Journal
GORDON Brown is under mounting pressure to act over claims a public body has blocked hundreds of vital new homes in Tyneside contrary to Government affordable housing objectives.
The Prime Minister has promised to investigate the role of the British Rail residuary board – which sells off no longer needed ex-BR land – in a “log-jam” over the development of a 20-acre derelict site between Gateshead town centre and the Felling bypass.
Gateshead Council has already bought a large part of the land but warned long-running discussions with the board had “stalled” as the proposed affordable housing meant it would not command such a large profit from the sale.
Tyne Bridge MP David Clelland also challenged the Prime Minister to investigate after highlighting how a quarter of the 440 planned homes on the old Freightliner site would be affordable in the Commons.
“The completion of the acquisition of the site is being held up by the British Rail residuary board on the rather curious premise that the council has depressed the valuation of the site by planning affordable housing. Should this public body not be more au fait with Government priorities and objectives?” said the Labour MP.
Mr Brown said he would “of course” look into the matter and write to Mr Clelland. “There is a need for affordable housing in every part of the country, and we will wish to do the best that we can to meet the target of 3m new houses by 2020, a very substantial number of them affordable for first-time buyers,” said the Prime Minister.
The need for action has also been underlined by Gateshead Council, which wants to bring a derelict and unsightly area back into use after more than 20 years.
Councillor David Napier, the council’s cabinet member responsible for housing, said: “Their valuation is based on the maximum possible financial return for this site, and seems to take little account of the local housing market or people's needs.
"It is frustrating that the attitude of the BRRB, which is a private company owned by the Government, seems to be at odds with the Government's own policy. The recent housing Green Paper clearly suggests that redundant land of this sort should be used to accommodate more affordable housing.”
He said high-quality homes would attract workers and companies to the area and contribute to regeneration of the town centre, communities and the neighbouring Baltic Business Quarter.
"We are grateful that the Prime Minister has now promised to look into this matter.”
A Department for Transport spokesman said the residual British Rail Board (BRB) was still negotiating with Gateshead Council on the sale of the former freight depot. “The revenue BRB generates from land sales helps fund transport improvements and they can only accept offers that match the market value of the land,” he added.
