Agenda item

To consider the accompanying report by the Director of Planning & Strategic Transport:

8.1  Lombard House, 2 Purley Way, Croydon, CR0 3JP

Deed of Variation to the affordable housing provision in the s106 agreement attached to permission 15/01236/P for Demolition of existing buildings; redevelopment of site to provide new buildings ranging from three to six storeys in height comprising 32 one bedroom, 48 two bedroom, 13 three bedroom and 3 four bedroom residential units and 2,296sqm of commercial floorspace (within class B1a & B1c) provision of associated parking, open space and landscaping

Ward:West Thornton

8.1  Lombard House, 2 Purley Way, Croydon, CR0 3JP

Deed of Variation to the affordable housing provision in the s106 agreement attached to permission 15/01236/P for Demolition of existing buildings; redevelopment of site to provide new buildings ranging from three to six storeys in height comprising 32 one bedroom, 48 two bedroom, 13 three bedroom and 3 four bedroom residential units and 2,296sqm of commercial floorspace (within class B1a & B1c) provision of associated parking, open space and landscaping

Ward:West Thornton

The Deed of Variation was to reduce the affordable housing on site to 19 units instead of 31 (25% instead of 36%, with 60/40 split between rented and shared ownership)

The Planning officer explained that since planning permission had been granted, a further viability assessment had shown the scheme was not viable.  Unless the developer decided to start again and submit a new application, the only action available was to come back to the Council with a Deed of Variation. 

The assessment had shown that it was not even viable to build at all but the developer still wants to go ahead delivering the lower level of affordable housing.

Members queried why the developer would want to continue if the scheme was completely unviable.  The Planning officer explained that the viability assessment assumes a certain profit margin but it is up to the developer to decide, from a business perspective, whether it is worth delivering based on future potential rise in value.

Members were keen to ensure that a review mechanism is in place which will allow the Council to have more affordable homes delivered on site if it was feasible in the future.  The Planning officer suggested that, if not possible to be on site, then the Council could receive cash in lieu or hold some units in abeyance to change from private to affordable.

The Chair suggested the mechanism should be looking at 30% with a fall-back position of 25% if not possible.

Diana Thomson (Savills) spoke as the agent, on behalf of the developer, stressing that the change in the economic situation since 2015 had affected viability of the scheme.

Cllr Stuart King, ward Member for West Thornton argued that the site had been purchased in the full realisation of the potential challenges and that 30% affordable housing was acutely necessary here.

The Director of Strategic Planning & Transport highlighted to the Committee that, if this Deed of Variation was not agreed, the developer could submit a new application which may have an even lower offer.

(N.B. Councillor Bernadette Khan left the Chamber at 8:52pm and returned at 8:54pm, so she excused herself from voting on the decision)

Having carefully considered the officer’s report and addendum, Councillor Paul Scott proposed and Councillor Humayun Kabir seconded and the Committee voted 6 in favour, with 1 abstention, so the Deed of Variation was GRANTED for Lombard House, 2 Purley Way, Croydon, CR0 3JP, with the condition that 30% habitable rooms provision is safeguarded, subject to review at a later date, to secure more affordable housing on the site if at all possible.