Homes project is slated
Jul 3 2008 by William Green, The Journal
A£2.2BN Government scheme to boost the North’s housing market was labelled a spectacular waste better at demolishing homes than building new ones.
The criticism came as the influential Commons public accounts committee warned that demolition sites could be the legacy of the Pathfinder programme – which runs in Newcastle and Gateshead – without longer-term support.
The scheme was designed to tackle low demand in areas where economic decline and lack of investment left thousands of homes hard to let or sell, resulting in streets of empty properties.
The Government has provided £1.2bn and committed another £1bn up to 2011, with 40,000 properties refurbished and 10,000 demolished but only 1,000 new homes built so far.
Some £131m has been handed to Bridging Newcastle-Gateshead, one of the nine pathfinder areas in the North and Midlands, with 1,623 existing homes improved and 124 new properties compared to 289 demolitions in the last year.
The committee added it was difficult to determine if improvements in housing demand in pathfinder areas were due to the scheme or normal market operation.
MPs said action should be taken to ensure residents are not forced out of their communities.
Compensation for compulsory purchase of homes is currently £35,000 less on average than that required for a suitable alternative local property.
Committee chairman Edward Leigh said the programme had been more successful at demolishing old homes than at building new ones.
Ministers should address community stress sparked by the programme and not destroy distinctive historic neighbourhoods, he added.
Newcastle Central Labour MP Jim Cousins said: “The housing market renewal programmes have been a spectacular waste of money.”
He claimed the housing stock, including affordable housing, had fallen in Newcastle with low earners struggling to buy and developers pulling out of projects due to changing market conditions.
But Newcastle City Council leader John Shipley said the programme was absolutely crucial to renewing housing, particularly in Scotswood and Walker.
He added that a mix of homes from rental, affordable, shared equity and full ownership would be available through 5,000 homes being developed in Newcastle and Gateshead.
And the Liberal Democrat said his party promised no further major demolitions when it took control of the city, with the amount kept to the absolute minimum.
Anne Mulroy, director of Bridging Newcastle- Gateshead, said it was transforming communities and extensively consulting with residents who were offered financial support.
She added that residents were very satisfied while the National Audit Office found all pathfinders had cut the price gap and performed better than other low demand areas.
“We have invited Mr Cousins to meet with us on a number of occasions to discuss the investment programme.
“We have a positive approach to building neighbourhood confidence and our local MPs should all be supporting this,” she added.
