Agenda item

Recommended for Approval.

The Director of Neighbourhood Services recommended that, subject to the time limit and the conditions detailed in the report now submitted, in respect of application 3/13/0343/SV, East Herts Council agrees to a variation of the Section 106 agreement to reduce the number of affordable houses to 13 units, comprising 10 units for social rent and 3 units for shared ownership.

Councillor D Andrews referred to the viability assessment adding that he was not unsympathetic to the application but that the village needed social housing.  He stated that such housing need not be cheap, adding that most were let at current market value.  He referred to the costs of the archaeological works and of the need to work with the developer to find something closer to the affordable housing figure previously agreed.  Councillor Andrews stated that the developers should have known that the site was opposite a major Roman conurbation. 

Councillor A Burlton referred to the developer’s error in his costings, stating that it was not an issue for the Council to resolve, but for the developer to absorb. 

Councillor T Page stated that he could not see the relevance of the legal modification adding that it was the developer’s miscalculation.  He referred to the Council’s duty to young people, particularly in villages to provide affordable housing and that agreeing to this request would set a precedent.  Councillor N Symonds supported this viewpoint adding that the developers should have looked at the cost of the land to see if they could afford to build. 

Councillor M Alexander stated that the Council would not have originally approved this from the viewpoint of 13 affordable homes and stated that this was a dangerous digression from policy.

Councillor S Bull referred to the fact that Rialto had been in business a long time and should have known the cost of land.  Councillor P Moore referred to the need to build communities for families.  She would not support the proposal.

The Director stated that independent advice had been sought in relation to the viability of costs and suggested that there was an element of negotiation needed in relation to the number of units and that due consideration and recognition needed to be given to the archaeological costs.  He stated that it was reasonable for the developers to achieve a profit at the market value of the site. 

The Director emphasised that reducing the number of units would not create a precedent, as each would be considered on its merits.  He referred to the need for the Council to deliver housing and that it did not have adequate land in this particular area and of its designation for housing purposes in the development plan.  The Director stated that professional independent advice had recommended that the Council accept the revised scheme.

Councillor K Crofton urged Members to be flexible adding that it was an exceptional situation and that, unless the Council did something, it could lose a good development.  He urged the need for further consideration and negotiation.

The Director was uncertain that further scrutiny of the figures would bring about anything different to what was being proposed.

Councillor A Burlton proposed and Councillor D Andrews seconded, a motion that the application be deferred to enable Officers to enter into further discussions to seek to secure enhanced affordable housing provision.

After being put to the meeting and a vote taken, this motion was declared CARRIED.  The Committee rejected the recommendation of the Director of Neighbourhood Services as now detailed.

RESOLVED – that the application be deferred to enable Officers to enter into further discussions to seek to secure enhanced affordable housing provision.