"He said the decision to remove affordable homes and instead propose a 100 per cent private rented scheme was driven by viability assessments. In planning terms, viability refers to the financial feasibility of a development. It considers whether a project can generate enough value to cover all costs, including planning obligations such as affordable housing, while still providing a competitive return for the developer and landowner."
"Our second application, presented earlier this year, was designed to deliver a development consisting entirely of affordable housing. However, it was not possible to secure the necessary funding, as some of the homes would have fallen outside the timescales for which the grant was available. Developers often need grant funding to include affordable housing in projects because market-rate homes are far more profitable, leaving what is called a subsidy gap."
Developers removed affordable homes from a major Mitcham project and proposed a 100% private-rented scheme due to viability and funding constraints. Earlier approvals included a scheme promising 35% affordable housing, but that model was judged no longer deliverable. Viability assessments concluded the project could not cover affordable housing costs while providing required returns. Grant funding through the GLA Affordable Homes Programme is available but some homes fell outside grant timescales, preventing an entirely affordable scheme. Complexities of the former gasworks site and rising construction costs further reduced feasibility. The developer remains in discussions with Merton Council and the GLA to secure funding.
Read at www.standard.co.uk
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