"Go and build somewhere else if you do not want to financially contribute to our village" - developer accused of failing to honour community contributions

Forge New Homes has applied to Bolsover District Council to vary the agreement with its scheme on land off Park Avenue and Blacksmiths Close,in Glapwell, to spare the developer from having to pay the agreed amount of funding towards the community and provide an agreed proportion of affordable homes.

The developer has submitted a viability report claiming its plans have become unviable since the scheme was originally granted conditional planning permission in 2020 and after it recently received conditional approval for reserved landscape and layout matters.

Campaigners, who opposed the original plans under a different developer for up to 62 homes, have been shocked by the new developer’s attempt to renege on the expected Section 106 community infrastructure funding and on providing an agreed number of affordable properties.

Resident Lyndsay Faulkner stated: “The planning permission has been agreed with the conditions attached and these should not be revoked just because the builder wants to make an increased profit.”

She told the developer: “Go and build somewhere else if you do not want to financially contribute to our village.

“This was agreed in the previous decision. You have already taken away our field, at least honour your contributions to our village or don’t build here at all. We do not need these houses, they do not benefit us.”

Forge was granted conditional planning permission for the scheme’s reserved matters in July after acquiring the 2020 conditionally approved housing site from Meadowview Homes who have already developed a site at the nearby former Glapwell Nurseries.

A council report outlined Forge’s obligations under a legal agreement including providing affordable housing amounting to ten per cent of the scheme’s properties.

It also stipulated £227,996 should be paid to Derbyshire County Council for The Bolsover School, £995 to the district council for upgrading sport facilities including Glapwell Sports Ground, and £836 per home for children’s play facilities.

Other matters included a sum to be paid to the district council to maintain the scheme’s Public Open Space, £3,750 for the county council to monitor a Travel Plan, and a contribution of art work.

However, Forge submitted a Financial Viability Assessment report claiming market conditions have ‘evolved’ since 2018 with changes to development values, construction costs and wider economic conditions that affect the scheme’s viability.

The report claims the scheme is commercially unviable because even without affordable housing it would only provide a profit level of 9.14per cent on gross domestic value, which it claims is below the rate of return a developer would expect.

Also without affordable housing and S106 contributions, the report claims a rate of return of 16.53per cent for the developer would still be below the industry accepted rate of 20per cent for the scheme to be commercially deliverable.

But the report also claims a viable scheme could still be delivered with adjustments and it would still contribute to housing needs and bring in social, economic and environmental benefits.

However, the report stresses that complying with affordable housing and other S106 contributions would increase the viability deficit and risk compromising the scheme’s delivery.

Forge Land & Development Director, Reuben Spears, stated in a letter there have been changes since 2020 with the building of new homes with increased interest rates, higher mortgage rates, higher development finance borrowing, building costs, Covid and geopolitical disruption, and supply chain pressures have increased costs including for materials and labour.

Mr Spears added recent taxes, levies and regulations have resulted in a downturn in housing delivery, and sales values have not kept pace with the rise in building costs, and uncertainty and increasing living costs have suppressed the housing market.

He stated “Due to the significant extra burden of costs to bring forward this proposed development, the S106 from the 2020 outline planning permission is now not a viable proposition and we request a variation to the S106 is entered into further to the necessary review having been completed by Bolsover District Council.”

Campaigners had opposed the original scheme in 2020 on the grounds that amenities would be stretched to breaking point and that traffic during and after construction would ruin residents’ way of life.

The scheme’s original Meadowview Homes’ planning application for up to 62 properties attracted 65 concerned representations including villagers and campaigners who also raised concerns that the development will see a number of trees felled and the loss of wildlife habitats.

Despite a planning officer’s recommendation in 2020 to refuse the housing scheme on the grounds it would be inappropriate in the countryside, the planning committee granted outline planning permission on the basis that the scheme’s benefits outweighed any harm.

But permission was granted subject to securing affordable housing and community infrastructure contributions which is something the new developer is now proposing to vary with claims that the scheme is no longer viable with these in place.

Sarah Bister, who campaigned against the original housing plans, said: “What stands out is that their own figures show that even if they pay nothing towards Section 106 and public art – a combined £467,188 – the scheme’s profit margin of 16.53per cent still falls short of the 20per cent return they say is the industry benchmark.

“In other words, the report appears to argue the scheme is unviable at every level tested, including zero contribution.”

However, Ms Bister argued the viability report features a benchmark land value of £10,000 per acre but she claims this is at the bottom end of a comparable quoted range of between £9,000 to £17,000 per acre, and it has been presented despite local agents quoting £15,000 to £17,000 per acre for land in Glapwell.

She added that the 20per cent profit benchmark is sourced from the council’s 2018 Local Plan viability evidence which she says has been acknowledged as being out of date.

Forge’s application to modify its S106 and affordable housing contributions originally based on an agreement from March, 2020, is being considered by Bolsover District Council which declined to comment on the matter at this stage ahead of any final decision.

Mr Spears added: “We are committed to working with Bolsover District Council to secure the deliverability of the 49 new homes at this site.”