£60,000 homes go on sale for £175,000 by Finance News Bulletin

Published: 19/12/07

News Companies & markets Investing authority portfolio Campaigns Mortgages & homesMortgage featuresInsurance Consumer advice Broadband & phones departure Saving & banking Credit & loans Small business Tax & wills communication boards Money blog Tools & calculators inquire an expert Guides Compare & buyJohn Prescott's flagship scheme to construct affordable homes for now £60,000 was last night exposed as a sham after the first properties went on auction - for at least £175,000 each

A QUICK MONEY MAKEOVER If you only have one miniature to learn how to sort your finances, forget the relax and read this>> Our 8-step planThe Deputy Prime priest challenged developers to construct more than 1,000 homes on ten nationalized sites at a cost of £60,000 each to assist first-time buyers on to the property ladderBut last nighttime Crest Nicholson, the builder of the first project, admitted that the homes were never going to be sold for £60,000 and that the project had been a victim of administration 'spin''This was never a competition to provide cheap housing,' said a spokesman

'It was to improve construction competence and plan and we are satisfied that Crest Nicholson met that criteria It was John Prescott who connected the £60,000 price to affordable housing We never gave that feeling'Mr Prescott had claimed the properties on land selected by English Partnerships - the Government's housing renewal quango - would give people on low incomes a chance to pay money for their own homes

He said: 'As well as enabling more families and unparalleled buyers to have a decent, reasonably priced home of their own, the £60,000 housing challenge is raising the bar for the excellence of developments'By separating the cost of the ground from the construction price, we have shown that it is possible to construct a house that first-time buyers can afford'But last night his claims were described as 'deceptive' by a Conservative MP after he discovered that the first novel homes were selling for at least £175,000 in his Buckinghamshire electorateThe 16 properties, being built on an old hospital place at Newport Pagnell, are a mix of two-bedroom flats and houses and are on sale for £175,000 and £195,000 in that order

Mark Lancaster, MP for Milton Keynes North East, supposed: 'There is little difference in price from any other newbuild possessions in the area John Prescott allowed people to consider that these houses were going to be cheaper than those already on the market, but the £60,000 confront was a gimmick'The fully insulated 'green' homes come with built-in kitchens with ceramic floors, energy-efficient gas central heating and double-glazing More are being built in towns counting Dartford and Maidstone in Kent, Basingstoke in Hampshire, Hastings in East Sussex and in the Oxford area

The former head of English Partnerships, John Calcutt, 60, was chief executive of top Nicholson for more than 14 existence and his younger brother Paul is still an executive of the company, with the title of group land directorJohn Calcutt, a legal representative who was awarded a CBE in 1998, was chosen by Mr Prescott in March 2006 to skull English Partnerships, which has been challenged to give 15,000 homes on regeneration sites by 2010 John Calcutt submissive from English Partnerships in January to review 'housebuilding delivery' for Communities and restricted Government Minister Ruth KellyCrest Nicholson is a most important developer for eight projects overseen by English Partnerships worth at least £700million

Last week the corporation, which made an £80m profit on £690m income in 2006, was purchased by the far above the ground Street bank HBOS and Scottish property tycoon Sir Tom seeker in a deal valuing it at £715mStephen Stone, chief executive of top Nicholson, said there had been no disagreement of interest between John Calcutt's former role with the company, his following position as head of English Partnerships or his brother Paul's position at the firmMr mineral said: 'English Partnerships deals with the bids for its sites methodically and efficiently'Paul Calcutt is not involved in the day-to-day business of tendering for contracts and John is no longer a shareholder of Crest Nicholson

' English Partnerships also deprived of there was a conflict of interest A orator said: 'English Partnerships, as a Government body, has a very strict open-market tendering process'During his occasion as chief executive of English Partnerships, John Calcutt had no financial interest with Crest Nicholson He also made no decision on projects involving Crest Nicholson

Before amalgamation English Partnerships, John Calcutt sold all his shares in Crest Nicholson and left the company pension scheme'accommodation Minister Yvette Cooper yesterday insisted that 54 of 68 homes to be built on the Newport Pagnell place would be affordable and include social accommodation for first-time buyersHousing Minister Yvette Cooper, "How much" in real terms is affordable Please quotation in pounds shillings and pence

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