Why is this six-storey building still empty?

Vancouver House was bought by developer Amar Mehli in 2022

A derelict six-storey building which stands in the middle of a town is at risk of never being brought back into use, according to property developers.

Vancouver House, on Corporation Road in Middlesbrough, has stood empty since its controversial sale by the town's council.

Developer Amar Mehli, whose company owns the building, said it had been difficult to rejuvenate partly because financiers were "scared of Middlesbrough".

But one property consultant in north-east England, who wished to remain anonymous, said the building had never been "commercially viable" and should not have been sold. Middlesbrough Council declined to comment.

The former office block was sold by the local authority in 2019 for £822,000 to a company called Arain Holdings.

Mr Mehli took over the firm and the building in 2021 and tried to sell the property for £2.9m last year.

In October the building was put under the receivership of CG and Co, who have been approached for comment.

'Blight on town'

A property consultant told the BBC he believed Middlesbrough had a "dysfunctional" property market where it only made financial sense to refurbish major buildings if government subsidies were involved.

He called the council's decision to sell the property "short sighted" and said the abandoned building was now a "blight on the town".

Mr Mehli said he had faced problems redeveloping Vancouver House and believes banks are happier to fund projects in London where there is a view that, even if they failed, buildings are likely to hold their value.

But that property price guarantee does not exist in Middlesbrough and similar towns across north-east England, he said.

Property advisor Andrew Wilkinson, from Connect Property North East in Stockton, said he feared the building would remain empty until council or government support was provided.

"Developers are caught in a rock and a hard place, [especially] in a town at the moment that isn't really showing any signs of improvement," he said.

Middlesbrough Development Corporation said it had a number of projects looking to "breathe new life into derelict and unused buildings in the town centre".