Homes scheme hit by hitches
the proposals.
In his report to councillors, Sefton’s chief planning officer said: “Since securing planning permission in 2013, the development of the site has stalled.
“Work has progressed to discharge a number of planning conditions attached to the permission, however, in terms of physical works, nothing has commenced on site.
“It is understood that the supported housing units were to be transferred to Cosmopolitan Housing Association, who have now ceased to trade.
“In addition, various site investigations have highlighted extremely challenging ground conditions, significantly worse than previously anticipated.
“Due to such circumstances, the abnormal costs associated with developing the site have become a greater cost than originally anticipated and the scheme was deemed financially unviable by the developer to continue.”
Keepmoat Homes has since been in discussions with Sefton Council’s consultants, Keppie Massie, to find a solution that might save the scheme.
They have asked councillors to agree to allow them to see the requirement for social rent replaced with affordable rent.
Sefton’s chief planning officer said: “The developer’s viability assessment on this basis shows a small profit including overhead at £172,145 which is equivalent to just over 1% of gross development value.
“The level of profit return, including overhead in the viability assessments prepared at the time that planning permission was granted, was in the region of £2.8m or 18.5% of GDV.
“The level of profit in the current assessment at only 1% of GDV is clearly well below this; however, it does mean that on this basis the developer could undertake the development and recover their costs while making a very limited return.
“The proposal to convert the social rented units to affordable rent is a pragmatic solution in this case.”