Burnham Admits £1bn Skyscraper Fund Delivered Almost No Affordable Housing

We from the Greater Manchester region have followed with interest the city’s bold plans to reshape its skyline. In recent years, Andy Burnham, Mayor of Greater Manchester, pushed a £1 billion “Good Growth Fund” to support major skyscrapers and regeneration projects. The idea was simple: unlock investment, build new homes, and help the economy grow. But there’s a growing problem. Despite the big budget and tall towers, the fund has delivered almost no affordable housing, a core goal for many residents facing rising living costs.

Overview of the £1bn Skyscraper Fund

• Fund launch: In late 2025, Greater Manchester announced a £1 billion “Good Growth Fund” to support city development.
• Purpose: The fund provides loans, grants, and investments to kick-start stalled projects.
• Economic goal: Burnham described it as a new model for city growth.
• Main aims:
  • Unlock stalled projects: Speed up construction and regeneration.
  • Increase housing supply: Build more homes for residents.
  • Create jobs: Over 22,000 jobs were expected from initial projects.
  • Improve infrastructure: Enhance roads, parks, and community spaces.
• First wave investment: About £400 million aimed to deliver 3,000 new homes and 22,000+ jobs.
• Expected impact: The fund hoped to ease housing pressure and help more people afford homes.

Affordable Housing Shortfall

• Delivery failure: Despite big numbers, official figures show almost no affordable housing delivered.
• Funding used: Hundreds of millions spent, but very few units are affordable for families.
• Luxury focus: Most new homes are market-rate or high-end units.
• Reason, planning, and profit: Developers claim affordable units reduce profit margins.
• Council role: Sometimes,s affordable targets are reduced or waived if projects are “not viable.”
• Public concern: Rent and house prices keep rising, frustrating residents.

Reactions and Criticism

• Campaigners’ view: Burnham and authorities failed to link funding to clear affordable housing targets.
• Luxury vs. need: Projects favored luxury skyscrapers over homes for local workers.
• Trust impact: Poor performance weakens public confidence in investment schemes.
• Resident concerns: Economic growth benefits developers, but ordinary people still struggle with rent and mortgages.
• Official defense: Burnham says the fund also targets jobs and regeneration, which may indirectly help housing.
• Reality check: Hard numbers on affordable homes remain low.

Economic and Social Implications

• Skyline change: Skyscrapers like Contour towers reshape Manchester city centre.
• Business impact: New developments attract companies and residents.
• Social gap: Many people still cannot afford city-centre homes.
• High demand: Truly affordable homes remain scarce despite strong building activity.
• Delivery stats: Manchester has built under a third of long-term housing targets, with only a portion affordable.
• Key issue: Growth is happening, but social priorities lag behind.

Lessons and Next Steps

• Tie funding to results: Future funds should require affordable housing delivery before payouts.
• Balance growth and housing: Cities must plan for both economic growth and affordable homes.
• Engage communities: Long-term trust depends on meeting local residents’ needs.
• Future plans: New mayoral development corporations aim to deliver more homes and jobs beyond the fund. 

Conclusion

The Burnhams’ £1 billion skyscraper fund is a lesson in modern urban policy. Large sums can drive dramatic physical change, and Greater Manchester’s skyline is now taller and more vibrant. But tall buildings alone aren’t enough. We from the region see that affordable homes, homes people can truly afford,  remain scarce. The gap between ambition and outcome shows how tricky it is to balance city growth with social equity.

For future plans to succeed, leaders must ensure that public funds lead to benefits felt by everyone. Without that, tall towers risk becoming symbols not of progress, but of promises unfulfilled.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.