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THE GOVERNMENT has paid out a record £450,000 for an end-of-terrace house in one of the Victorian streets being bulldozed across northern England to make way for modern housing developments.
A Cheshire-based property investor picked up the payout, which is more than double the price that any other property has fetched on the same road in the last two years. Property experts said it could be completely refurbished for less than £100,000.
The purchase price is the most blatant example yet of how a £1.2 billion government housing regeneration scheme has been undermined by rising house prices and property speculation.
“It’s the most ridiculous amount of money to spend on a house so that you can knock it down,” said Karen Abbad, who belongs to a local residents’ association near the condemned Manchester property. “They should be investing the money in renovating these homes.”
The scandal of the huge payouts for houses due for demolition has emerged after a freedom of information request by The Sunday Times. The prices now being paid mean Gordon Brown will have to scale back the demolition plans for rundown Victorian and Edwardian homes or find billions of pounds out of public funds to buy them.
Under the government’s so-called Pathfinder scheme - championed by former deputy prime minister John Prescott - it was proposed up to 200,000 Victorian homes in the Midlands and northern England would be bulldozed and replaced with modern housing developments.
When the Pathfinder projects were first conceived, terraced homes could be bought in the north of England for as little as £12,000, but Yvette Cooper, the housing minister, has been caught out by rising property prices.
It was confirmed this weekend the most expensive Victorian house bought to date for demolition is 1455 Ashton Old Road in east Manchester. A Cheshire-based investor sold the house to Manchester city council last year for £450,000 under the Pathfinder project, funded by the Department for Communities and Local Government.
Residents claimed the price was about £100,000 above market value, but council officials insist they paid a fair price based on the local property market.
Steve Clapperton, a local landlord, said: “I would not buy houses for that much and then demolish them. It’s a waste of taxpayers’ money.” He said a property like 1455 Ashton Old Road could be refurbished for £75,000 and brought to modern standards with all necessary fire and health protection in place.

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I actually bought one of these houses to live in last year (one of the few that will remain standing) and they are extremely beutiful and well built. This house is run down but would not take much money to put right. By the way my house cost under 200k and is a near exact replica so how they can fathom paying 450k is beyond me.
Apart from this the development will provide a community with the much needed regeneration.
I wonder how much the goverment is spending redeveloping London with the olympic games ect...biggest waste of money the millenium dome, why wasnt it placed in the midlands?
you Londoners cant have it all for yourselves
Dean, Manchester,
Just another example of the Government trying to use 'Market Forces' to solve a problem - Actually there wasn't a problem, other than that the market price for houses in some areas was too low for developers.
Victorian houses are not the ultimate, but look at hte pries the fetch in London!
They are more likely to be owned, unlike council flats or new housing which at best will be co-ownership.
(Although ownership is not a bulwark against demolition.)
The visible pattern of Victorian streets is more understandable than most new developments.
The houses in general have some private external space (Yard or garden).
Housing policy is , and has been driven by political expeidency for too long.
David Berridge, London, London
£450,000 to demolish a Victorian house? That's unacceptable! Give me £10,000 and I'll do the job. I hate those decrepit and out of date Victorian houses. They are absolutely useless. Even if you renovate them how many people will live there? 10? 20? maybe 30 if you shove them. Now, put the damn thing down and build a decent, new, contemporary building 8 stories high with 4 flats per floor and you can have 32 families living there comfortably. That's straight forward THINKING. I guess modernity has not arrived in England yet.
Fabio C, London, UK
If we did that,Tsai Chi - bulldoze 60 per cent of the housing stock and replace it with gardens, I mean - there wouldn't be enough room for the close on 200 thousand immigrants expected next year. We might even be reduced to sending them all back to where they came from. THEN we'd be for it with the bash-Britain brigade.
Eileen O' Conor, Cordoba, Spain
I want to make a point, there is a known act outlawed called "carpetbagging" for all people not aware of this , people opening up accounts with a building society on so called "hearsay" more like insider trading ! that a demutulisation will happen , opening a bank account with minimum funds for example £100 made you eligible for a dividend payment this was made illegal to do. However someone somewhere is letting information out and pinstripe money sharks are getting wind of these so called "Terrace locations" Investors buy on so called "hearsay" then low and behold the goverment give them thousands to buy it off them? sound familiar? so this is my advice for a money wasting goverment , keep the terrace houses , rennovate them , create communities again as these terraces are a far better build then some houses we have today, make them affordable, this will not happen as long as back handers continue on the back benches! .. for the record i am an investor,an investor in people not profit
Leon Jones , leeds, uk
Given that this Government wastes in the region of as much as £82 Billion a year, this waste is quite reasonable by their standards.
Judy , Liverpool, england
Another example of this governments failure to keep control of the purse strings. Is there nothing they can do without getting it completely wrong?
d case, newquay,
It is just too daft to laugh at! But that is a Labour Govrnment in action for you.
Davidka East Yorkshire
W D Toulman, Walkington, United Kingdom
The sort of stuff Knighthoods are made of......Sir John Prescott..you must admit it has a ring to it...........pity it wasn;t a noose!
mike, oxford, england
This is appalling. What a waste of tax payers money.
A disgrace for those displaced from their cherished homes and paid low values as in previous clearances.
Everyone has a right to a good quality home at a fair price. The UK's system allows profiteering and this damages the whole economy. High house prices are a curse not a benefit.
Edina, Manchester, UK
Agree with Tsai Chi - most of the old housing in the UK is dreadful but please get continental builders and design firms to replace it. See Nottingham or Margate if you want to see horror replacement schemes. PS. Why not arrest Prescott for stupidity and or when he is knighted call him Sir Fool of the North.
Frederick, London, UK
Since when has Victorian been the ultimate in housing? Britain's antiquated buildings are not all that wonderful. It takes an extraordinary lack of imagination to be attached to the dreary and grimy past. Unfortunately, blind modernising is no panacea either. The housing estates being pushed lately by styleless and quite surely corrupt planning permissionaries all too often leave little space for breathing and condemn yet another generation to bad taste and suffocating soulless proximity. If it was me I would bulldoze 66% of the housing stock and replace it with garden. Yes - leave only every third house standing! Mind you, while we are at it, one might as well bulldoze the council offices as well; they tend to keep the best land to themselves.
Tsai Chi, Cambridge,