Developer pulls out of deal for former Wellington hotel

Nextdom was granted planning permission for the conversion scheme at the Charlton Arms in March last year. At the time, the company agreed to contribute more than £28,000 toward primary education and £13,200 towards leisure facilities.

The developer also agreed to make sure that a quarter of the completed flats were affordable, either through social housing or shared ownership schemes.

But Nextdom has now said that it will not make enough of a profit on the homes to be able to afford the contributions or to sell affordable housing.

Telford & Wrekin Council's plans board members heard last night that Nextdom had not signed the documents to confirm the agreement when it had been given planning permission, and that it now predicted that the scheme would 'barely make a profit'.

Wellington town councillor Roger Aveley told the meeting that he was disappointed that the developer was not able to keep the agreement. He said: "The developer bought it with the intention of turning it into flats, and it was the developer who suggested the affordable housing and the financial contributions last year."

Council officers said the developer was hoping to get grant funding from the Homes & Communities Agency so that it could begin work on the site next year.

But officers said that they recommended dropping the condition in the planning consent for the financial contributions and affordable housing.

Members of the council's plans board agreed to drop the condition so that work to preserve the building could begin as soon as possible. No-one was available from Nextdom today to comment.