HUNDREDS of new homes in Manchester and Salford are being deliberately left empty as speculators try to cash in on rising house prices.
At the same time the number of homeless and those forced to live in cramped and overcrowded temporary accommodation in both cities remains high.
Research found that up to 40 per cent of new flats in central Salford and parts of inner-city Manchester were being left empty despite there being a severe shortage of affordable housing for first-time buyers.
Investors prefer to leave them empty and in pristine condition, ready to sell on, rather than letting to tenants and risking damage to fittings and the need to redecorate. In Salford blocks have sprung up in and around Chapel Street.
Demand
As the demand for space to build new apartments has spread out of booming Manchester city centre, developers have moved just across the River Irwell.
Peter Connor, Salford Council's housing boss, said: "We're still working to establish the number of empty properties across Salford.
"Initial research in the housing market renewal area which covers specific regeneration neighbourhoods in Manchester and Salford does suggest that up to 40 per cent of new-build apartments may be standing empty. While we encourage the development of new housing we are concerned that property investors appear to be holding a lot of these properties empty."
In Salford 3,134 apartments and 1,854 houses have been built in the past five years. But up to March this year planning permission has been given for another 9,526 apartments and 1,716 houses.
Pipeline
Between April and October this year 800 apartments were built and 150 houses, and another 4,000 properties - nearly all flats - were added to the planning permission pipeline. According to council figures there were 630 homeless people in Salford in 2003 and this rose to 1,342 last year. In Manchester the figures for 2004 were 2,751 but dropped to 1,341 for this year.
Joe O'Neil, a Liberal Democrat councillor in Salford, said: "It is a disgraceful and shameful situation that people have no homes, or cannot get a foot on the property ladder, when others are snapping up flats just to make a killing on the property market."
Statistics from the government show that at the end of September this year there were 758 households living in temporary accommodation in Manchester, an increase of 12 per cent on the previous quarter. In Salford the figure was 57.
The research was by the magazine Inside Housing and the 40 per cent figure relates to the Manchester and Salford Pathfinder area - earmarked for regeneration.
This includes Ordsall and Langworthy in Salford, and Harpurhey, Moss Side, Cheetham, Crumpsall, Gorton, Newton Heath, Longsight, Levenshulme and Abbey Hey in Manchester. The highest figure for new flats being left empty was Leeds - 50 per cent. London was 10 to 15 per cent.
A spokeswoman for Urban Splash - a high-profile developer in the Pathfinder area after their still-to-be-completed "upside-down" houses sold out within 48 hours - said more than half had been snapped up by first-time buyers. "The others were not major investors," she said.
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As an estate agent in Manchester this is not a new problem this has been going on for the past 3 - 4 years. The council and there slowness in the regeneration of Manchester are the ones to blame, the investors are only cashing in on there incompetence. Compulsory purchase orders have been slow and only exaggerate the problem we are faced with on a daily basis. We have areas that really should be a lot further on, in respect of the regeneration, however GMC are quite happy to continue holding empty properties, this in turn breeds problems. They have no appreciation for the owner occupiers still living in those areas of regeneration.
I live in Irlam and there are dozens of flats & houses on the multitude of new developments in our area lying empty - all the while the council approve even more developments. Sheer lunacy given the traffic problems the area already suffers through poorly-designed roads & junctions.
Homes should be built with the sole purpose of housing people, and never allowed to become a money making racket.
The government are trying to Ameicanise this country, where only the rich own property.
Immoral isn't the word.
It's all about money. It's their own fault for not trying hard enough at school to find a better job, now they are complaining. Stop whinging and sort it out yourselves.
Not sure who ranter is having a go at or even if he has a grasp of what he is talking about but I think he will find that the GMC was abolished in 1986, so how he can blame them I don't know. In my opinion the real problem is that there are too many apartments being built and these are then being sold off to investors at discount prices.
What happened to the MCC dream of affordable housing for everybody?? What a load of old rubbish has been talked about providing affordable housing for everybody? Its one big money making scheme.Keep the money in the hands of the few??? Manchester regeneration was a godsend for the privalidged few??.I know a lot of people who were given a measley amount of money for their homes under the Compulsary purchase scheme? 40 grand for your old house but 100 grand to buy a smaller new home?? what a way to treat people,force them out of their homes that are affordable to sell them a new house that costs the earth ........
We are building our ways into problems as we build yet more apartments those apartments need services? we are now runnimng short of services "electric/water/sewage ect." Our services have always been adequate for our needs as a island but now we are seriously being squeezed for yet more services??
John. Bit of a short sighted comment there mate. Homelessness can arise from all sorts backgrounds and life events - its not just about trying harder at school.
We are building the slums of the future here. Apartments attract a limited range of occupants and do not meet the expectations or needs of families. Oversupply will drive down prices which will in turn lead to a spiral of decline, similar to what Central Salford and North Manchester are only just recovering from, due to massive Government investment. Our planning authorities really need to get a grip on this before it reaches the point of no return.
I did well at school, got A levels and I've got a good job!
However I can't afford anywhere to live!
Yet Six years ago i could have afforded a lovely semi detached!
So its not a case of not trying at school!
I totally agree with ANON. I for one is educated and work in a decent job - but to get on the housing ladder has been hard work. If the opportunity arises then that will be great. I do beleive that house prices have rocketed and I don't think there worth that much for bricks and mortar - that is unless of course I live in a mansion. The Government really needs to tackle this issue or at least match wages against these houses. I don't know how they expect people to survive this if houses prices are pushed further.
People choosing to use their property in a way which offends politicians - can there be a greater crime? Send them to prison immediately!
Weren't the authorities recently proposing to take forced possession of houses that had been vacant for a certain period? Perhaps because the owner was on holiday? The same principles and laws should apply to developers. Particularly when it's their core function to build homes that a community needs.
I am heavily involved in the production of these flats and houses in the salford area, and this is a catch 22 situation. There are always going to be homeless people,no matter what happens. Why is the onus on the builders to sort this problem out? Builders invest a lot of money building properties and quite rightly are looking for a return on their investment,so why are they receiving bad press because of homelesness? The building sector is not a charity and there is a fair percentage of homeless that are in that status either through their own fault or thats the way they chose to be!
Are these privately built houses or council built houses? If they are built by privately companies then who is going to pay for the homless to live there?
I think these investors that are keeping the properties empty should be made to pay Council Tax, as these properties could easily be leased out, as quoted below from the M.E.N web site.
Investors prefer to leave them empty and in pristine condition, ready to sell on, rather than letting to tenants and risking damage to fittings and the need to redecorate.
I thought empty houses are charged council tax anyway ?
The problem started with the Right to Buy scheme. Great news for tenants who could afford to buy their council houses but I'd love to know just how many council houses have been sold in the Manchester area alone, leaving a shortage of homes for those who need them. This coupled with the rises in property prices makes it so difficult for anyone to get on the property ladder. I'd hate to be a college leaver now, wondering how on earth I could afford somewhere to live.
I just wonder how many families and single people will be walking the streets or living three to a room this xmas? while we have lots of houses/flats lying empty "Making money" While people are freezinf cold and living in doorways Ect ?I a family on tv a few weeks ago being refused a room for the night by the local authority? and the powers tha be "governments/councils" say there is never any need for people to be on the streets?This is a load of garbage .While people with kids walk the streets? we have houses empty making money for the very rich "A caring society" YOU MUST BE JOKING??
Ace,
If tha's that concerned 'bout omeless folk - give em your address.
While I am at it I bet yor car could be used as Taxi while you are not using it.
I bought my council house on the right to buy scheme 2 years ago and my house is worth triple what i paid for it so i will be laughing all the way to the bank when i sell it but it took me nearly 18 months to buy the house as the central heating system is a council owned one, if i hadn't been able to buy through this scheme i would never have been able to get on the property ladder unless i won the lottery so i am glad i decided to do it, anyone cotemplating doing it all i can say is go for it you won't regret it and for those who can't do it stop winging and get a job
Joey Pica, Ashton under Lyne i can see youve got that good christian spirit in you this xmas? if you read what i said you would have understood what it was about? why should empty homes be left when we have people without homes ? the reason "so that while they are empty they make more money" That isnt right when we have families with children being refused a roof over their heads ?
ali, manchester city centre that is where the problem lies when you eventually sell your house,the price you want will be way above what most first time buyers can afford ? so your argument is recyprical .you buy cheap but sell at extortionate price "three times more than you paid" All that this does is make prices of homes rise year by year?? People should be taxed heavy on the profit on their homes this will slow the rate of house prices?.People in france and other countrys buy homes to live in .In britain people buy homes to make profit.??this dosnt give first time buyers a chance
Ace,
I have a benevolent spirit 365 days a year not just at this festive time.
For whatever reason people are homeless sequestrating other peoples propery is not the answer (IMHO).
The council has an obligation to "rehouse" deserving people - that is not a task for members of the public (Property speculators included).
Ace, I was given my house at half the market price as i had lived in in for 8 years before i bought it, thats how it works you get a percentage discount according to how long you have lived there, I spent a lot of my own money doing it up whish is why it is worth a lot more than when i bought it and the profit i made will give me a very good deposit towards my next property so please tell me why i shouldn't make a profit when i have worked my whole life and paid all my taxes surely i deserve something back, i'm just sorry others seem to be envious of people using there initative