Developer wants to ditch affordable homes at Telford site

Lovell Homes says it has been unable to bring its development forward on the site of Orleton Park and former Orleton Lane Infant and Nursery School in Orleton Lane, Wellington because of the problems.

Proposals are now going to Telford & Wrekin Council's planning committee to remove the affordable housing agreement, to allow work to continue.

In 2009, a reserved matters application was approved for 165 dwellings, sports pavilion, two full sized sports pitches, one junior pitch and associated parking.

A report, going to the committee on Wednesday says: "The section 106 agreement, entered into by Lovell Partnerships Ltd on March 9 2009, following granting of the reserved matters permission secured the obligation of the developer to provide 25 per cent of the dwellings as affordable housing, with 13 percent being Shared Ownership and 12 per cent being rented housing.

"This equated to a total of 41 dwellings.

"The applicant subsequently applied to discharge all relevant precommencement conditions attached to the reserved matters permission and commenced work on site, in order to implement the permission.

"Officers confirmed in a letter dated March 29 2012 that planning permission had been implemented and the permission was ‘live’.

"Shortly afterwards, works on site stalled and no further works have taken place since. The site currently sits vacant and overgrown."

Wellington Town Council has objected to the amendment, with will be decided by committee members.

But the report adds: "Viability evidence has been presented based on the market value of the land today, which is substantially less than the developer paid the council in 2009, and using two scenarios, one with the original 25 per cen affordable housing and one with 0 per cent affordable both of which prove the development is still unviable.

"The applicant has advised that as a result of the property market downturn from 2008 to 2012 and subsequently because market values in the area have done little more than match increases in construction costs, they have not been able to bring the site forward as they are unable to make a competitive return on the site.

"They confirm that they are committed to developing the site as in reality it is their only means of recovering their investment in the site, however, as it stands the obligation to provide 25 per cent affordable housing makes the scheme unviable.

"They are therefore seeking the support of the council in making concessions in terms of affordable housing provision, in order to allow the development to proceed.

"Officers are mindful that the site represents the council’s oldest major stalled site, which has sat vacant for a number of years and has become something of an eyesore.

"Whilst the omission of any affordable housing provision on the site is far from ideal, officers accept the viability case made by the applicant’s consultant and accept the position that the planning obligation position needs to be reconsidered to allow the development to be brought forward."

Officers have recommended that the agreement be discharged, but a final decision will be made when the committee meets at the Whitehouse Hotel in Wellington.