£60k about to be written off over affordable homes

DERBYSHIRE Dales District Council has had to write off a nearly £60,000 affordable housing payment after almost a decade – because the developer failed to pay, then went into liquidation.

In April 2009, planning was granted for two detached dwellings on land at Old Coach Road, Tansley, near Matlock. Sheffield firm Barncroft Homes Limited had agreed to pay the council £61,575 to build affordable housing elsewhere.

It had committed to do so through a legally binding contract called a Section 106 agreement. But the payments never came forward, the company went into liquidation, and now the authority is asking its members tomorrow to approve a decision to write off the money.

Barncroft was due to make the payment within two years of being granted permission to build. But the debt remained unpaid and “prolonged discussions” agreed revised payment terms.

The total owed to the council had increased to £69,752.14 as a result.

In early 2012, payment terms were revised again but the company again “failed” to make the payments and the council began debt recovery proceedings through the courts. The cost of the proceedings is not known.

At this point, the owed money totalled £59,438.32. In August, Barncroft went into liquidation.

A report for the council meeting says: “Despite pursuing all options, we have been unable to secure payment from Barncroft.

“The committee is therefore asked to consider writing off the S106 debt.”