Developer says Whitleigh homes can't be affordable after housing providers pulled out
Agents say housing providers turned down the Plymouth site over its timber frame construction
A developer in Plymouth wants to change a legal agreement so 27 new homes in Whitleigh no longer have to be affordable.
Whitleigh Developments Ltd is seeking to change the Section 106 Agreement for Whitleigh Green. Planning permission granted in 2016 secured the delivery of 100 per cent affordable housing on the site.
The site has 21 flats and six houses, which planning documents say are set to be completed in the next few months.
The developer wants to bring the site forward as open market housing instead. It has applied to Plymouth City Council for pre-application advice.
Why the developer wants the change
LHC Design, agents for the applicant, said the original developer and contractor, G2 Limited, entered insolvency. They said the client took ownership of the site through the receivership process.
The agents said the client has since made extensive efforts to find a registered provider to take on the completed homes, including Plymouth Community Homes, Aster and Cornerstone.
They said: "None were willing to proceed principally because of the timber frame construction and concerns around National Described Space Standards."
The agents said a 100 per cent affordable development is therefore no longer deliverable, and the client now wants to bring the site forward as 100 per cent open market housing.
Costs and contributions
The agents said the site currently benefits from 100 per cent social housing relief. They said it would have a liability of £65,764.29 if the entire relief were withdrawn.
They also said a significant grant liability with Homes England would have to be repaid if affordable housing is not delivered.
If open market housing is allowed, the developer is asking to be exempt from infrastructure contributions, which would normally be charged as standard.
The agents said the development runs at a significant deficit before any contributions. They said independently provided open market sales values from CBRE (Commercial Real Estate Services) fall far short of build costs.
They said that on this basis they do not believe the development can support standard infrastructure contributions or further affordable housing obligations. They said they would like to discuss an approach that keeps the development deliverable.
Similar request in Lipson
Plymouth City Council has also been asked to drop 44 affordable homes from a development at former allotment gardens in Lipson, because the developer says it is not viable.
Planning committee members have deferred that application for further information.