More than 150 homes proposed west of Scunthorpe – but developer asks for none to be ‘affordable’

A major housing application has been made near Scunthorpe – and a developer has again asked to not include any affordable homes.

Gleeson Regeneration Ltd want to build 158 homes on land just north of Burringham Road, near Lindsey Lodge Hospice to the west of Scunthorpe. It has also submitted an independent financial viability assessment, which argues it cannot afford to include 20 per cent affordable homes, or pay £1.2m S106 local infrastructure contributions, or the site will be unviable.

One planning document, however, predicts the development would create 165 jobs directly, and 323 indirectly. The homes’ construction would cost £13.4m.

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Affordable homes are those sold or rented at 80 per cent or lower of market price. Usually, 20 per cent of homes in larger developments are affordable housing.

S106 agreements are reached between the local authority and developers for larger projects. They typically involve financial contributions from the developer to pay for community infrastructure, like increased numbers of school places, as well as the affordable homes.

Real estate firm Cushman & Wakefield carried out the viability assessment for Gleeson’s application. The council has expected S106 contributions of £1.2m if the development progresses. This is split between £114,000 for the NHS and the rest on education.

But the assessment concludes the scheme is unviable with any S106 contributions or affordable homes. It predicts a £2.1m shortfall in benchmark land value if there were no affordable homes, and residual land value would be negative £220,000 with 20 per cent affordable homes.

The viability assessment takes into account “significant standalone build and abnormal costs required to bring the site forward”. It also includes an assumption of £5.1m developer profit in its calculations.

A separate Economic Benefits Report by Gleeson talks up the proposed development’s positive effects on the local economy. This includes not only the job predictions, but also cash to the council. This comprises an expected annual extra £260,000 in council tax, and a first year new homes bonus of £230,000. It forecasts 126 rental homes will be vacated by those who move into the family-focused development, and Gleeson also express enthusiasm to employ local apprentices to construct it.

The proposed 158 homes would be split between 24 two-bed, 102 three-bed, and 32 four-bed homes. This includes eight two-bed bungalows, while 316 parking spaces will be created. A large public open space with a play area would form a central point of the development.

A submitted independent transport assessment predicts it would generate 78 two-way trips in the morning rush hour and 77 two-way trips during the afternoon peak hour. It concludes there are no substantive highway grounds for refusal.

The site is allocated for housing in the wider Lincolnshire Lakes project. This involves the building of thousands of homes in more than two thousand hectares of land west of Scunthorpe, and the M181 Burringham bypass junction. Legal permission was given in May for junction works to begin.

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There have been other cases in recent months of developers submitting independent viability assessments to argue they cannot afford to include affordable homes, or make high levels of S106 financial contributions, or the proposed project would be unviable. In November, Persimmon just about successfully got removed a more than £1m required S106 contribution for its 200 homes site between Bottesford and Yaddlethorpe, as well as affordable homes expected of it.

Earlier this month, LandIS achieved the same for its 350 homes plans at the former RAF airfield in Kirton Lindsey. Both applications were approved with ‘clawback mechanisms’ for S106 contributions to be reviewed every 12 months.

Gleeson have applied for the removal of an affordable homes requirement from a proposed 81 homes development on land off Scotter Road South, Scunthorpe. And finally, an application was made for 290 homes off Wrawby Road, Brigg, last year by Bellway Homes (Yorkshire), also requesting no affordable housing, or S106 contributions.

Original artice: https://www.grimsbytelegraph.co.uk/all-about/scunthorpe