Ipswich leaders call decision to scrap discount homes a 'pragmatic response'
96 affordable homes are due to be built in the town
A decision to scrap discount homes at a 96-strong estate in Suffolk is a ‘pragmatic response’, a councillor has said.
Earlier this week, members of Ipswich’s executive discussed an update on several housing developments being carried out by the council’s house-building company, Handford Homes.
96 homes in Ravenswood, one of the developments, are expected to be completed by April this year, but it's now been decided 10 of them are no longer financially viable.
The council's now instead proposing to turn them into private market rentals.
Cllr Alasdair Ross, the council’s lead for housing, said turning them into private market rentals was the next most accessible option.
He added: “The council is reluctantly proposing this change due to rising housebuilding costs, which have meant that discounted market sale is no longer financially viable for these units.”
These homes are required by a section 106 legal agreement to be offered for affordable ownership and sold at a discounted rate.
Cllr Ross explained the homes could no longer recover their cost due to market conditions.
Cllr Oliver Holmes, Lib Dem leader, prompted the housing lead for an apology to residents.
Addressing this, Cllr Ross said: “The recommendation is a pragmatic response to market conditions and I do not agree an apology is required, it isn’t something we’ve just come up with today.”
Cllr Ian Fisher, the Conservative leader, prompted further, asking what had changed since the development was given planning permission in 2021.
Cllr Ross said the authority had been looking at the financial viability of the homes for three years.
He added: “We would like to have kept it as the original plan but that hasn’t been possible and to wait any longer would just put further costs onto the actual development.”
Executive members allocated £15,000 to work out a planning application to turn the homes into private market rentals, meaning a final decision is expected during the full council meeting next week.