A decision to scrap discount homes at a 96-strong estate is a ‘pragmatic response’, a councillor has said.
Yesterday evening, members of Ipswich’s executive discussed an update on several housing developments being carried out by the council’s house-building company, Handford Homes.
In Ravenswood, one of the developments, although all 96 homes are expected to be completed by April this year, 10 of them have been deemed no longer financially viable, with the council now proposing to turn them into private market rent.
The Ravenswood development could see 10 homes turned from affordable housing into private rentals. Picture: Ipswich Borough Council
Cllr Alasdair Ross, the council’s lead for housing, said turning them into private market rental was the next most accessible option.
He added: “The council is reluctantly proposing this change due to rising housebuilding costs, which have meant that discounted market sale is no longer financially viable for these units.”
These homes are required by a section 106 legal agreement to be offered for affordable ownership and sold at a discounted rate.
Cllr Alasdair Ross, the council’s lead for housing, said turning them into private market rental was the next most accessible option. Picture: Ipswich Borough Council.
Cllr Ross explained the homes could no longer recover their cost due to market conditions.
Cllr Oliver Holmes, Lib Dem leader, prompted the housing lead for an apology to residents.
Addressing this, Cllr Ross said: “The recommendation is a pragmatic response to market conditions and I do not agree an apology is required, it isn’t something we’ve just come up with today.”
Cllr Oliver Holmes said an apology should be issued to residents. Picture: IBC
Cllr Ian Fisher, the Conservative leader, prompted further, asking what had changed since the development was given planning permission in 2021.
Cllr Ross said the authority had been looking at the financial viability of the homes for three years.
He added: “We would like to have kept it as the original plan but that hasn’t been possible and to wait any longer would just put further costs onto the actual development.”
Executive members allocated £15,000 to work out a planning application to turn the homes into private market rentals, meaning a final decision is expected during the full council meeting next week.