Housing Scam

The Sunday Times lead with an article on how private speculators appear to be benefiting from compensation being paid to home owners which are due for demolition.

The problem arises when homes earmarked for compulsory purchase are identified well in advance. Homeowners not willing to wait until the Pathfinder scheme is implemented sell up to investors.

When the houses are purchased by authorities the market value of the house is paid as well as 7.5% bonus. Sources believe that £35m of the £125m paid in compensation so far has gone to investors.

In a separate article yesterday, Hazel Blears the new minister in charge of housing accepted a donation from Brian Scowcroft a North West developer who coincidentally has a large outline planning application waiting to be approved.The proposed construction of a large hotel and conference centre in Cumbria is likely to be passed by planners back to Ms Blears...