Midas Application
The Midas homes planning application was deferred at the planning meeting on 17th June.
The application caused some controversy because it was put in one day before the required "affordable homes" allocation was increased from 35% to 50%
The application caused some controversy because it was put in one day before the required "affordable homes" allocation was increased from 35% to 50%
posted by Mabena | 3:13 pm
1 Comments:
The reason why Midas whipped in its application a day before the affordable housing requirement changed from 35% to 50% is reflected in other planning applications throughout the UK this year. It is connected with the fact that there was a horrid realisation (now even clearer) that building profits, like house profits, are falling rapidly and if the 50% affordability criterion were adhered to, there would be no profit on any development. So, by stating a 50% statutory affordability criterion on developers, the government has achieved 2 things: (1) to foist onto private developers the cost of its failure to deliver housing at an affordable market rate and (2) - this is the law of unintended consequences – to frighten developers so much about the consequent profit losses that there will be less building. 35% is a level that some developers could just about deliver and still turn a profit. But if developers are forced to provide 50% affordable housing, out of their own profits, in a failing market, they will simply back out and decline to build. The result will be zero affordable housing because there will be zero developments. This is already beginning to happen in the current market and it cannot possibly benefit anyone in our community.
I’m sorry to be so controversial on your blogspot, but it seems to me that no-one else has yet made this point.
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