COUNCILLORS have been asked to release a housebuilder of their obligation to build affordable homes as they now consider the move “not viable.”
Copeland Borough Council has received an application to modify the legal agreement included in planning permission for seven homes at Tarn Bank.
The client of SRE Associates received planning permission for seven homes on land at Tarn Bank, Braystones in 2014.
A Section 106 Agreement imposed by the Development Control department tied the applicant into supplying five affordable homes and two open market homes with the housing stock.
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Development has commenced at the site but the council is now being asked to modify the agreement as the applicant does not believe it will be possible.
In supporting statements they said: “This submission seeks to vary the Section 106 document to remove reference to affordable housing units.
“The development as approved with 2 open market properties and 5 affordable properties is considered not to be viable.”
A financial viability appraisal attached with the application to remove the affordable homes confirms that “a reasonable profit cannot be made from the development by including the affordable properties.”
Carigiet Cowen Chartered Surveyors undertook the independent study finding that “A minimum developer’s profit of 18-25 per cent would be anticipated, as a result this viability appraisal determines that no designation for affordable dwellings should apply.
“The development of the site would provide reasonable quality living accommodation but not bespoke or of a particularly high quality, as the market would not withstand the increased build cost of a higher specification.
“Construction costs proportionately outweigh sales values and as a result when a developers reasonable profit is accounted for a schemes capacity for affordable provision is restricted.”
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The public can view and comment on all applications submitted to Copeland Borough Council for approval.
Councillors will take comments of support or objection into account when giving a verdict.
To view applications submitted for your area, visit: https://www.copeland.gov.uk/planning
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