Profits protection sees developers avoid building low-cost properties

BIRMINGHAM’S homeless were denied more than 1,000 lower-cost properties last year after developers found a ‘legal loophole’ to avoid the fordable homes discount.

Housing charity Shelter revealed that during 2015/16 in Birmingham developers behind the construction of 2,916 homes were able to backtrack on promises to deliver 1,003 at the afford- af- able rate by arguing their profits would be unfairly hit. Firms must provide 35 per cent at the affordable rate if they build more than 10 homes – or pay the council compensation.