Scaling back of house building plans branded ‘short-sighted’

BUSINESS leaders have accused politicians in one of Yorkshire’s property hotspots of jeopardising the economy after plans to build hundreds of new homes each year over the next two decades were dramatically scaled back.

A wide-ranging development blueprint has been approved by councillors in York which has set an annual target of 575 homes to be built in the city up until 2031.

But the York and North Yorkshire Chamber of Commerce, which was established 150 years ago and has 1,200 members across the county, has maintained that the house-building rates need to increase significantly to support economic and population growth.

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Senior members of the council’s executive decided to push ahead with the revised target under the Local Development Framework despite advice from independent planning consultants that between 780 and 800 homes should be built each year.

The chamber of commerce’s chief executive, Gary Williamson, said: “It is extremely disappointing that local politicians would adopt such a short-sighted approach to the city’s housing needs by disregarding the professional advice.

“It also raises the question as to why councils would pay money on consultants’ reports if they then ignore their expert advice, particularly at a time of restricted public sector finances.

“The city and its surrounding areas already experience housing affordability problems and the decision to deliver lower amounts of housing would exacerbate this trend.

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“Without an appropriate range of housing in the city, it will be difficult to attract the skilled workers who will contribute to the long-term success of the economy.

“Local councillors should be sending a message out to the rest of the UK that York is open for business, welcomes investment and supports enterprise. A failure to meet housing demand creates the opposite impression.

“The chamber and our members are asking local politicians to re-consider their decision and deliver the housing provision that the city needs.”

Latest figures from the National Housing Federation have revealed that the average cost of a property in York is £191,000, while the average income is only £20,500.

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York Council’s executive member for city strategy, Coun Steve Galloway, admitted that there are grave concerns about whether the revised annual target of 575 homes will actually be met over the next two or three years.

The construction industry is still reeling from the aftershock of the recession, and there is little hope of an upsurge in the property market as prospective buyers continue to face huge challenges in securing a mortgage.

But Coun Galloway said the planning policies now in place were sufficient to meet York’s property demands over the 20 years.

Planning approval has already been given for a series of developments which will create a total of 4,000 properties – although these include major house-building programmes such as Germany Beck which are currently on hold.

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However, some of the biggest developments that the city will have seen in recent years, such as the long-awaited £1 billion York Central scheme, were heralded by Coun Galloway as vital to meeting housing needs.

He added: “We consulted with residents, who were keen the city’s character and the surrounding Green Belt should be conserved.

“I am confident that any increase in job numbers and the subsequent demand for property will be more than adequately met by the planning policies which are now in place.

“However, I am not confident that the number of homes will actually be built over the next few years. But it is a matter for developers to come to us with planning applications.

“It is entirely down to the market and whether house-building schemes are viable, and that remains a significant concern.”