A FORMER York school once earmarked as a site for a new homeless centre could be sold off for nothing more than the price of a two-bedroom terraced house, the Evening Press has learned.

We understand valuers believe the land at Shipton Street School, in Clifton, is worth no more than £125,000 if sold to a developer.

So while first-time buyers must shell out top-dollar prices for basic starter homes, a builder will be able to purchase the acre of land where the school stands for a pittance.

Property experts have told us the price is restricted because of City of York Council's commitment to affordable homes, which reduces profits, and because the building is listed - and so cannot be demolished.

Until last month, the former school, which shut three years ago, was being lined up as a possible new base for the Arc Light project for the homeless.

But a strong local campaign, backed by a 2,000-name petition, forced Arc Light to scrap its relocation plans for the school.

City of York Council leader Steve Galloway then said the school site, which covers about one acre, would be placed on the open market "as soon as possible". The £125,000 revelation caused uproar among Clifton residents, who are still arguing for the site to be utilised for the community.

The average price of a two-bedroom terraced house in Clifton hovers around the £125,000 mark.

In last week's Property Press, a house on Pembroke Street, off Burton Stone Lane was advertised for sale at £125,000.

Another, in Ratcliffe Street, was on the market for £134,995 - nearly £10,000 more than the huge school site.

Dave Nicholson, chair of the joint committee of Clifton ward resident associations, set up to oppose Arc Light's plans, said: "It is absolutely shocking that they could consider disposing of that property for that amount of money.

"Why not approach the community and ask them for themselves? There are so many better ways of proceeding. Why not give us a chance to have a say on the future of the school?

"We know there is a pressing need in this city for affordable housing. If they are prepared to let it go for that amount of money they will have to consider affordable housing."

A City of York Council spokesperson said: "A valuation has been received, but this information is commercially sensitive.

"However, it is worth pointing out that any valuation would need to take into account the following factors.

"It is a listed building and its outward appearance would need to be retained, as well as the need to provide affordable housing. Part of the site would also need to be retained on lease by York City FC."

Updated: 12:28 Tuesday, October 25, 2005