A councillor has told developers: Don’t buy land if you can’t afford to develop it.
It comes after a Colne Valley developer sought to axe all financial and planning contributions from housing consent granted by Kirklees Council because the development wouldn’t turn enough profit if he had to pay up.
Marsden-based SB Homes were given planning permission for 28 houses, seven flats and a maisonette on land off Howgate Road in Slaithwaite in 2011.
Negotiations have been taking place between the developer and Kirklees planners, who were asked to secure what is known as Section 106 (S106) contributions – a series of financial and planning contributions paid by the developer in order to secure planning permission to build.
Kirklees officers calculated that SB Homes would have to pay £84,016 towards local education, make five of the houses affordable and pay £88,700 for off-site public open space.
But SB Homes has said that is unviable and they don’t expect to meet the industry-benchmark of 20% gross development value profit, even without zero S106 contribution.
As such, they asked Huddersfield’s Planning Committee to axe all the contributions, which councillors reluctantly agreed to do.
Clr Donna Bellamy, Colne Valley Conservative, said she knew the site and queried if the land owner had received rent from a private firm which has been storing building materials there. Kirklees officers couldn’t tell her.
Clr Bellamy added: “He’s a local builder, he lives in the locality so he knows the area really well.
“Can I suggest in future when he’s buying pieces of land that he does make sure they are viable when he does purchase them?”
Clr Ken Sims, Holme Valley South Conservative, said developers were treating the committee as “clowns” and that developers had to stop “offering everything to get planning consent then withdrawing it”.
Clr Jean Calvert, Ashbrow Labour, was equally unhappy, adding: “I am disappointed about this” as she voted against axing the financial contributions.
Clr Carole Pattison, Greenhead Labour, added: “It’s awful that we haven’t been able to secure, after four years of negotiations, that 106 agreement.
“But it is a brownfield site, come a couple of years time when we have a Local Plan in place we will be begging people to develop these brownfield sites, if they don’t they will move on the greenfield.”
Steve Mitchell, speaking on behalf of SB Homes, said: “At this stage many developers would walk away from such sites, not withstanding that, the applicant is willing to continue with the development. He is prepared to take a risk and accept a profit level well below industry standards.”
SB Homes have said they will begin building on the site within the next 12 months.
