Burnley housing scheme branded 'waste of money'

6:40am Thursday 28th August 2008

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By Chris Hopper »

A COUNCIL scheme to renovate dozens of dilapidated Burnley homes has been branded a “massive waste of council tax money”.

The Vacant Property Inititiative, set up by town hall bosses in 2005, sees homes bought at market value before being improved and put back up for sale.

The council received £325,000 from regeneration agency Elevate for the scheme and said it expects to raise another £970,000 from other homes it owns.

But it has emerged that housing chiefs are set to make a loss on at least one property after it failed to sell despite being on the market for around two years.

They bought the house, in Westmorland Street, in October 2005 for £35,500 before spending £29,000 on renovating it and putting it up for sale.

However, the property has still not been bought and bosses are willing to accept bids “in the region of £60,000” - around £5,000 less than they spent on it.

Officers have defended the scheme - which has so far renovated 17 homes - saying it is about improving neighbourhoods, not making money.

But Vanessa Robinson, of Burnley-based letting agency Pennine Properties, said: “The scheme is an absolutely massive waste of council tax money.

“Nobody wants to talk about it at the council because I think they are embarrassed about it.

“They are spouting off about empty homes in Burnley but the Westmorland Street house is still empty.”

The property is in the Trinity ward that has been selected to pilot a new initiative designed to get tough on rogue landlords in problem areas.

However, Miss Robinson said Burnley Council had not done enough to make it easier for landlords to sell and let homes in neighbourhoods blighted by anti-social behaviour.

She added: “The house has been done up to a good standard but they can’t sell it because there’s so much anti-social behaviour on that street it’s untrue.

“We find it hard to let properties round there because they are not managing the trouble in that area.”

Burnley Conservative councillor and property developer David Heginbotham defended the Vacant Property Initiative, which is mostly funded with cash from regeneration agency Elevate.

He said: “It is a worthwhile. I think it is the local authority ensuring it looks after the wellbeing of the residents of that particular area.”

A Burnley Council spokesman admitted the scheme had made a loss overall but said the house in Westmorland Street was in the process of being sold.

Regeneration director Mike Cook added: "This project is not about profit, it is about tackling the problems caused by empty and abandoned properties that, in turn, cause other problems the taxpayer has to fund - arson attack, anti-social behaviour or general disrepair.”