Deansgate Square, the name given to four glass towers of luxury apartments and penthouses rising from central Manchester, represents a stark symbol of inequality. The tallest building outside London, its marketing promises a 'superstar' lifestyle with exclusive gyms, private social clubs, and breathtaking views. From the 61st floor, residents can see the Pennines and Cheshire hills, while two miles west lies Salford's media city with its TV studios and celebrity-filled wine bars.
However, the name Deansgate Square is controversial. These towers were built with loans totaling £983 million from a fund championed by Manchester's socialist mayor, Andy Burnham, intended to support local building projects and help ordinary people struggling to buy or rent homes. The Manchester Housing Investment Loans Fund, backed by hundreds of millions in government funding, has given 60% of its money—£600 million—to a single property company, Renaker, founded by entrepreneur Daren Whitaker, whose net worth of £525 million placed him seventh on the North West rich list last year.
No Affordable Housing in Luxury Developments
Renaker has provided no affordable housing at Deansgate Square or among the 6,110 homes it built with fund money, according to a Greater Manchester Combined Authority (GMCA) report. All have been luxury properties, many snapped up by overseas speculators and rented at unaffordable prices, with many now standing empty.
Meanwhile, Manchester has the third highest homelessness rate in the country, after Birmingham and London, according to Shelter. One in 74 residents lacks a permanent home, relying on emergency accommodation, sofa surfing, or sleeping rough. In the city centre, including the famous Gay Village, one in 61 people is homeless. In Salford, the rate is even worse: one in 29. These figures are rising despite Burnham's promises to end homelessness, fueled by job shortages and an influx of migrants.
In 2024, Manchester City Council promised 10,000 new affordable homes, but only 791 have been delivered. For many waiting, this is not fast enough.
Homelessness Amidst Glittering Towers
In Hulme Park, overlooked by the towers, a tent housed a young homeless man who gave only a grunt when asked about his richer neighbours. Others have been more vocal. Criticism of the loans fund being used for private apartments in a city with a housing shortage has simmered since construction began in 2015. Now, as Burnham positions himself for a potential run for Prime Minister—preparing to be Labour candidate for the Makerfield by-election—the issue has resurfaced.
Burnham has long criticized the Right to Buy scheme, introduced by Margaret Thatcher in 1980, which allowed council tenants to buy their homes at discounted prices. He argues it has depleted state housing stock and worsened homelessness. In Greater Manchester, 24,000 council homes have been sold in the past 20 years, and 86,000 households were on waiting lists by 2024, driving up private rents. Burnham has requested central government suspend Right to Buy in areas with housing shortages, including Manchester, and has said 500 social homes are lost annually.
Yet, he has not explained why public funds were used for luxury towers instead of affordable housing. The GMCA claims the fund's criteria were set by central government and no viable scheme was turned down.
Voices of the Homeless
Daniel Parnell, 47, sleeping in a tent near Piccadilly station since his relationship broke down, laughed when asked about Burnham. 'I know all about the skyscrapers he built with our money. Why couldn't he spend some on social housing? Burnham has done nothing for me. Outreach workers come once a fortnight and ask if I'm okay. That's it.'
Another homeless man, Eric, a Romanian who lost his job at a plastics factory, had his passport swept away by council workers. 'I love my people and things are improving there. I'd go back if I had my passport. Now I'm a nowhere man.'
Jamie Ryan, 49, a former joiner, sits outside Greggs in a blue sleeping bag. After his mother died, he was denied her council tenancy and has been on the streets ever since. 'I think my mum's property went to a foreign incomer. It's wrong. I'm Manchester born and bred.'
Peter, a father in his forties, worries about his 74-year-old mother, a former NHS nurse who bought her council house under Right to Buy. Now, her street is plagued by noise and litter from new migrant families. He wrote to Burnham but received no reply. 'Ordinary Mancunian working people have been pushed to the back of the housing queue. Burnham has done nothing for them.'
As the Deansgate towers sparkle in the sun, the tents of the homeless below serve as a stark reminder of inequality. It is hard to disagree that the mayor's priorities seem misplaced.
