Developer loophole exposed

The Times (3rd March) reported that recent research undertaken by CPRE and Shelter has confirmed that developers are using 'viability' as way of avoiding ensuring that developments of 10 or more properties include at least 30% of affordable homes. The link to the research is here.

This is exactly what is happening here in Audlem with McCarthy & Stone's plans to build 25 retirement apartments at Little Heath. The plans do not provide any affordable homes. Instead McCarthy & Stone are offering to provide a sum of money to allow affordable houses to be provided elsewhere; there is no guarantee that these will be in Audlem.

McCarthy & Stone argued that rising land value and construction costs mean the development will not be viable – in other words, they won't make enough profit – and in their first application (17/0339N) offered £250,000 in lieu of affordable housing. This was well below the £556,699 indicated in an independent assessment commissioned by Cheshire East. As a result, in January 2018 the Southern Planning Committee was 'minded to refuse' the first application. This has now gone to Appeal and a public hearing will take place in Crewe on 21 and 22 March.

In the resubmitted application 17/5776N due to be heard by the Southern Planning Committee on 7th March McCarthy & Stone again cited viability as a reason for offering only £90,000 to offset the lack of affordable housing, against £305,000 now recommended by Cheshire East's independent assessment.

Reference was made to a potential change in legislation on ground rents which could have a negative impact on developer profits and their ability to finance the payments towards affordable homes. Apparently, the Dept. for Communities and Local Government is proposing that ground rents on new long leases for both houses and flats in future be set to zero.

After discussions with Cheshire East Council and 'in the interest of commercial expediency' McCarthy and Stone have indicated they are prepared to offer £287,648 towards affordable housing. But there is a catch. If the new legislation restricting their ability to charge ground rent is introduced prior to occupation of the first unit, Cheshire East have agreed that their contributions can be reduced to just £144,648. This is in addition to a contribution of £17,352 towards an extension to Audlem Medical Practice and provision of a green gym for use by residents of the apartments.

Audlem Parish Council will be speaking at the Southern Planning Committee. In addition to objecting to the minute contribution to much needed affordable housing Councillors will refer to many other reasons for refusing planning permission which can be found in the Cheshire East Local Plan and Audlem Neighbourhood Plan.

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