Beaumont Morgan Developments is set to get the green light to build 273 unaffordable properties in Ordsall, without paying a penny for planning obligations and affordable housing, when its planning applications go before Salford City Council's planning panel next week.
There's two schemes, the first of which is for 207 apartments and 13 townhouses off Ordsall Lane between Dyer Street and Everard Street. These are being built for the `buy-to-let' market. The second scheme is for an eight storey high block of 53 unaffordable apartments and a retail unit at the corner of Ordsall Lane and Woden Street.
Normally such schemes would be subject to planning fees and the provision of affordable housing. But, thanks to Salford Council's limp wristed, developer-friendly official new policy on such things, Beaumont Morgan Developments will not have to pay a penny.
The Salford Star has reported in great depth how Salford Council has brought in a new Planning Obligations SPD policy that divides the city into areas based on their land and housing values, where developers can make massive profits (up to £24million) and still not have to pay planning fees, nor provide affordable housing (see printed issue: £19million Planning Scandal click here).
Ordsall - next to Manchester City Centre and MediaCityUK - was deemed a mere `mid-value' area within the policy, and, thus, developers building high density apartments don't have to pay any fees at all, except on houses. So the plan for the eight storey block of 53 flats isn't subject to any fees, while Beaumont Morgan's other scheme is not subject to any fees for the 207 apartments, only for the 13 townhouses. Here the developer was asked to provide 10% affordable housing which equates to one miserable affordable house...
...But Beaumont Morgan isn't even providing this as it would make its scheme `not viable'... "The applicant states that the development would not be financially viable if affordable housing was provided on site or off site, or if a commuted sum equitant to one unit was provided" the Council's planning officer reports.
However, the townhouse development "is likely to result in an increased use of the public realm, open space, education facilities and affordable housing in the local area" adds the officer "Planning obligations have therefore been sought to mitigate against these impacts. An assessment of financial viability has established that the scheme cannot contribute to all the elements identified above..."
Instead, Beaumont Morgan will "enhance the pedestrian environment along Ordsall Lane and links between Ordsall Lane and the riverside walkway" in other words, stick down some new pavements and a few bushes... "Therefore" states the officer "no additional financial contributions are appropriate or necessary in respect of the proposed development..."
Normally, Salford Council would add one of its dodgy `clawback' arrangements whereby if the scheme does prove profitable the developer would have to cough up - but for this development warped profit logic comes into play..."no clawback is considered appropriate as a significant proportion of the units have been sold 'off plan'" states the planning report "The developer has advised that this development model, where marketing costs are high, but pre-sales fund the construction costs, enables the site to be developed..."
Altogether, 273 properties, not one affordable house and not a penny to be received in planning fees although we're sure that the new pavement and `enhanced landscaping' will more than make up for it...
See related Salford Star articles...
Salford Council can end £19million Planning Scandal states Government Minister - click here
Salford Council guarantees £21million loans for unaffordable housing - click here
Salford Council refuses to reveal viability figures - click here
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