Keigar Homes is again trying to reduce its affordable homes and cash obligations tied to the development for financial viability reasons
A developer is trying again to change affordable homes and cash requirements linked to the development of more than 300 homes in Barton-upon-Humber. In September, councillors decisively rejected Keigar Homes’ first attempt to modify the S106 agreement for phases 5 & 6 of its Falkland Way development off Canberra View.
The S106 agreement that applies to it currently, and dates back to 2022, includes the supply of 50 affordable homes and £3.1m cash for local infrastructure. Keigar’s second attempt to change the S106 agreement rehashes out two previous different financial viability assessments of phases 5 and 6 of the Falkland Way development.
Carter Jonas, commissioned by the council but paid for by the developer, felt the 317 homes scheme could be viable with either all 50 planned affordable homes and almost £580,000 infrastructure cash, or 32 affordable homes and £1,477,156. Keigar’s commissioned viability assessor, Devvia Property Consultancy, did not agree with some valuations by Carter Jonas and felt that excessive prices and assumed rates of house inflation had been applied.
Keigar offered a compromise of 16 affordable homes and the £1.5m cash. But North Lincolnshire Council’s planning committee unanimously rejected this two months ago.
Councillors expressed frustration with a recent trend in the local authority for developers to try to revise previous S106 agreements, particularly cash for local infrastructure, based on viability grounds. Keigar Homes had contended major changes were needed to the affordable homes and local infrastructure cash that were expected from it due to the development’s financial viability.
It commissioned the Devvia Property Consultancy viability assessment to support its case. Carter Jonas recommended in a letter to the council in August that Keigar’s suggested compromise of 16 affordable homes was agreed to, “in the interest of keeping development moving forwards”. This letter is part of documents submitted by Keigar in its second bid to change the S106 agreement.
The £1.5m S106 infrastructure cash Keigar is willing to contribute would include £200,000 for open space on and off-site, and potentially £125,000 for drainage and just over £850,000 for local education. The original S106 agreement, which Keigar is trying to amend, would result in £2.4m for primary and secondary education.
The two different viability assessments previously made are based on the developer taking a lower than normal profit share. Both concluded the original S106 agreement’s terms would make the 317 homes development unviable.
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