Money made from luxury city centre skyscrapers could be used to build social housing and seize slum properties from rogue landlords, under radical new plans.

The idea is being pushed by Salford mayor Paul Dennett as council leaders across the region grow increasingly alarmed by the housing crisis.

It would mean that the returns on loans given to developers - who are largely building around Manchester city centre - being used to help provide more genuinely affordable, and decent, homes.

Greater Manchester's housing investment fund, agreed under 2014's devolution deal, has so far concentrated on providing loans for market-rate housing, particularly large residential schemes in the city centre.

To date it has generated a £2m surplus due to the interest paid by developers, with a further £10m expected in the next three or four years.

Salford mayor Paul Dennett, who leads on housing for the conurbation, has now drawn up a new set of priorities for the money.

He will tell fellow council leaders on Friday that it should be spent on tackling the lack of genuinely affordable - and decent - housing in the region.

(Image: Daily Mirror)

Pointing out Greater Manchester’s social housing stock has shrunk by 5pc since 2012 at the same time as waiting lists and homelessness have soared, he says detailed plans are now needed to address the situation.

He is proposing to spend £350,000 of the surplus drawing up ‘concrete proposals’ to build new social housing.

A second priority will be rogue landlords, including a new fund to ‘buy out landlords operating poor / unfit private rented stock’, according to his report going before council leaders on Friday.

Greater Manchester’s housing investment fund has received criticism since being set up four years ago, due to the large sums loaned to upmarket developments in Manchester city centre.

However government restrictions placed on the initial pot meant it could only be loaned to private developers in need of extra capital to make their brownfield schemes stack up.

The report says more loans to such schemes should still be considered, noting that they ultimately generate larger returns than smaller ones.

(Image: Manchester Evening News)

But those returns themselves have no restrictions, it says, so they should then be recycled into more affordable schemes.

Coun Dennett is also drawing up a new overarching housing strategy for the region, due to be unveiled in February.

He says he specifically wants to focus on ‘social’ rent rather than the higher ‘affordable’ rents now charged by many housing associations, while also pointing to the 92,000 council houses sold off under Right To Buy in the region since 1980.

“Each one of these issues has contributed towards over 85,639 households now being on Greater Manchester’s housing registers,” he said.

“It is right that we now take the surplus funds that are coming back to us from successful loans made by the Greater Manchester Housing Investment Fund and put them towards helping those who are in desperate need of a decent, affordable home.

“If approved by leaders, we will also work up firm plans to create a fund that will buy out rogue landlords who are renting out substandard properties.

“This will send a clear message that Greater Manchester is a place where rogue landlords are not welcome.

“I hope leaders will agree with me that this is an important step as we move closer to unveiling the bold new Greater Manchester Housing Strategy.”

The move marks a shift in emphasis by the combined authority as a whole, as well as in relation to the fund.

To date the ten council leaders have collectively focused little on social housing, tending to prioritise boosting investment in private developments.

It also comes as Manchester council announced a new drive to build social and affordable homes this week, after two years of pressure from its backbenches.

The town hall revealed council housing could be built in the city centre for the first time in decades, while also pledging to build 3,000 ‘genuinely’ affordable homes over the next decade.

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