Council development firm may reconsider affordable homes move

Cornovii Developments Ltd, which is led by Shropshire Council, saw a revised application for 23 homes – including two affordable properties – at Ellesmere Wharf approved by the northern planning committee on Wednesday.

This was a reduction in the eight affordable homes pledged in the original application, which was passed by the committee in February.

But members were told at this week’s meeting that the company may deliver all eight if it could secure funding.

Planning officer Philip Mullineux said new Homes England requirements, which came into effect in March, meant that funding could not be obtained for affordable housing that developers were legally obliged to deliver under ‘Section 106’ agreements.

He said this meant the company needed to keep the affordable housing provision promised in its section 106 agreement to the minimum required under planning policy – set at 10 per cent for developments in Ellesmere – and would then be able to apply for funding for the extra units.

Mr Mullineux said: “The intention of the developer is still to secure grant funds to offer more affordable housing.”

He did however add that there was no “cast-iron guarantee” that the additional affordable homes would be delivered, as there would be no legal obligation on the developer to do so.

Councillor Vince Hunt said: “The issue is that the rules have changed, and we need to change the decision because to get the funding we can only put 2.3 homes in the (section) 106.

“So nothing fundamentally has changed about this. They are not proposing to reduce the number. It’s a bit of a technical exercise.”

Councillor Julian Dean said the changes to the Homes England regulations should have been known well in advance of the earlier application going before the committee in February.

Councillor Mike Isherwood said: “We don’t have a guarantee that the additional six homes will actually materialise because it depends on whether the funding will come from a different mechanism.

“So we have got to make sure we would still give permission if only two affordable houses were built.”

Councillor Mark Jones, who until recently was chairman of the council’s housing supervisory board which oversees Cornovii’s activity, said he had spoken to the company and been assured that Homes England had already approved the funding for the six additional affordable homes.

Upon hearing this members unanimously voted to grant permission for the revised scheme.

The site, which was previously earmarked for 60 flats, lies near the canal and will be accessed via Bridgewater Street.