Property developer says it ‘won’t make enough profit’ if it builds affordable homes

A property developer says it can’t comply with a Yorkshire council’s requirement for affordable homes as it won’t make a large enough profit.

Strata Homes has applied for planning permission to bring 180 homes to land off Westgate, Cleckheaton. Since the initial application was made in 2021, the applicant has submitted a viability assessment to demonstrate that it can’t make the accepted amount of profit should it comply with Kirklees council’s policy.

Ordinarily, when developments propose more than ten homes, the council requires that 20 per cent are affordable. In the case of this application, this would equate to 36 homes.

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However, as the applicant has provided supporting documents demonstrating that 20 per cent is unviable, just 12 (6.6 per cent) affordable homes will be provided if the application is approved. An independent assessment was also carried out to confirm the applicant’s findings.

Strata Homes says it ‘won’t make enough profit’ if it builds the required amount of affordable homes. (Photo credit: Amy Murphy/PA Wire)Strata Homes says it ‘won’t make enough profit’ if it builds the required amount of affordable homes. (Photo credit: Amy Murphy/PA Wire)
Strata Homes says it ‘won’t make enough profit’ if it builds the required amount of affordable homes. (Photo credit: Amy Murphy/PA Wire)

The council has recognised that developers reducing or eliminating affordable home provision on the grounds of viability seems to be an emerging trend. The issue was discussed at a meeting last month, and Coun Graham Turner, cabinet member for regeneration said: “Whilst it’s painful to say we’ll drop some percentage off, at least that way we get some houses because we are desperately short of houses in Kirklees.”

In November last year, councillors criticised Newett Homes for dropping their affordable homes provision from 13 to zero, and in Summer 2022, Prospect Estates Ltd said affordable homes should be dropped for the Clayton Fields site as it had run up a hefty bill while maintaining it.

A £357,733 contribution to education that would have gone to Heaton Avenue and Whitcliffe Mount schools has also been scrapped. This is despite one objection raised by locals relating to the strain that would be placed on local schools and doctors as a result of the development.

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Other objections include fears that local roads and drainage infrastructure can’t accommodate additional housing and concerns over the impact caused by the construction phase. However, not all of the seven representations object to the plans, with one welcoming the removal of ‘overgrown’ trees along Quarry Road side which leave residents with debris, leaves and branches.

The developer will still have to meet several conditions on top of the reduced number of affordable homes. These include £33k towards metro enhancements, £10k towards sustainable travel and £199,916 towards off-site measures to achieve biodiversity net gain.

The application will be decided by Kirklees Council’s Strategic Planning Committee this Thursday (April 6).