DARWEN MP Jake Berry has accused borough bosses of losing almost £500,000 over the compulsory purchase and sale of 14 homes in the town.
The houses in Queen Street, Sunnyhurst, were originally bought for £45,000 each for the new Orchard Mill social housing estate.
They were dropped from the scheme in 2009 and last week Blackburn with Darwen council’s executive board approved their sale for just £10,000 each.
Tory MP Mr Berry said: “The council appear to have wasted £490,000 of Darwen council taxpayers’ money on a bad deal. This is just not good enough.”
Borough resources boss Andy Kay hit back: “We got the best price we could. Their market value was zero.” The fourteen houses were among 178 earmarked for clearance in 2005 in the Queen Street/Hindle Street area to allow Twin Valley Homes to build the 95 property Orchard Mill estate. Residents of 55 to 81 Harwood Street objected and their homes were taken out of the scheme in 2007.
In 2009, it was discovered that demolishing 15 to 41 Queen Street would render the hill on which they and the Harwood Street homes unstable. They were also withdrawn. Now Orchard Mill is complete the executive board has sold the Queen Street properties to Twin Valley Homes for refurbishment and reoccupation.
At Thursday’s meeting, council Tory group leader Mike Lee asked: “We appear to be losing a lot of money on this transaction. Can you assure me we got the best value for money?”
Coun Kay replied: “Absolutely, yes.”
Mr Berry said: “I am very concerned about this deal. The council bought these properties for £45,000 each, £630,000 in total. They have sold for £10,000 each, £140,000 in total.
“That is a loss of £490,000 by a council which claims to need every penny because of government cuts.
“Somebody got this wrong. Either they paid too much or sold them too cheaply.”
Coun Kay said: “Nobody made a mistake. They were bought in good faith for an excellent development.
“Demolishing them would have been unsafe. We got the best price from Twin Valley Homes for properties empty for six years and will have nomination rights for the tenants.
“The residents of Harwood Street will be pleased when these homes are refurbished and inhabited.”
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