A St Helens housing development that was supposed to transform a former industrial site into a haven of affordable homes may not go ahead as planned, as bosses say they are no longer able to fund the whole project.
In 2020, St Helens Council granted planning permission for MCI Developments to build 63 residential dwellings comprising of 24 one-bed apartments, six two-bed apartments, 21 two bed houses, six three-bed houses, and six four-bed houses on land off Lancots Lane, Sutton. At the time, the developer said all the properties would be affordable to renters with a household income at or below the national average.
However, partner company Torus Developments now says the plans are "no longer viable", and has asked the council to remove a condition which states the development can only progress if at least 19 of the permitted dwellings are affordable according to the National Planning Policy Framework.
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Senior planner Shaun Gaffey, in a statement submitted to St Helens Council on behalf of Torus, which specialises in the building of affordable homes in the North West, said the company relied on funding from Homes England to complete its work, and that it had been unable to secure the money due to the promised affordable homes.
As a result, the company now faces a £650,000 funding loss. He said: "The applicant could not offer the residents the Right to Acquire, which applies to property being developed with Social Housing Grant and therefore the 19 units would not be eligible for grant funding.
"Consequently, (the condition) effectively renders the scheme unviable in its current form."
He added: "The site location is not viable for any element of affordable housing for market housing proposals. It is worth noting that this application does not seek to renege on the commitment to delivering affordable housing through reduction of numbers, and relates to tenure and viability only."
The application was submitted to St Helens council earlier this month. If approved, it will reduce the number of affordable homes on the development from 63 to 44.
Mr Gaffey said: "The loss of Homes England funding at the scheme for 19 units would equate to approximately £650,000 of lost funding.
"That loss of funding would be pivotal to any housing scheme but here we are in a location that is acknowledged by the Council as not being viable for any affordable housing to be delivered... in the newly adopted local plan. The conclusion that no affordable housing is viable without grant funding on an otherwise 100% affordable housing scheme is self evident in this case."
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