‘Filthy capitalists’ leave council with housing headache
There are all sorts of numbers around construction costs, land values and the property markets which to lay people point towards increased profitability not reduced margins.
But experts employed by the developer suggest the site will no longer be economically viable and the planning department agrees.
Chief planning officer Richard Goulborn described the viability assessments as “dark arts”.
If house builders are genuinely struggling, the risk of not releasing them from community or affordable housing clauses is that developments stall and the city get neither the housing nor the recent spin off.
The upshot of all this is that planning departments are under pressure to offer leeway to developers and so Birmingham is failing to achieve its target of 35 per cent of new homes being at the discounted affordable rate.
In fact the figure actually delivered seems to be 25 per cent – even with private developers’ shortfalls offset by the council’s Birmingham Municipal Housing Trust building programme.
Whether developers are genuinely struggling or gaming the viability system, the upshot from this is the city is only getting 62 per cent of the affordable housing demanded.
Chief planning officer Richard Goulborn described the viability assessments as ‘dark arts’...