Councillors have voted to approve a change to the number of affordable homes that will be delivered as part of a major new Brampton estate.
Carlisle City Council's development control committee agreed last Friday to an amendment of the agreed number of affordable homes that will form part of the new Carlisle Road estate, built by Story Homes, from 31 to 22.
This follows "extensive discussions" held between city council officers and Story, which had originally informed the council in July last year that affordable homes could not be provided at all as part of the development, if it was to remain economically viable.
The decision from the council's development control committee had originally been set for December, but was deferred in order to allow for further clarification on Story's projected profit margin on the new estate.
The original provision of 31 affordable homes, as part of the 106-home development, had been agreed as part of a section 106 agreement between Story Homes and the city council.
However, last summer, Story concluded that the continued impact of the Covid-19 pandemic on the housebuilding industry, coupled with the end of the Help to Buy scheme in March this year, had "severely challenged" the viability of the development as a whole.
The council then sought an independent assessment of the situation, which concluded that there were options by which a number of affordable homes could be delivered as part of the development, while maintaining a target profit of 17 per cent gross development value for the scheme as a whole.
During last Friday's meeting, development control committee member councillor Nigel Christian said that he was "certainly one of the people who were very concerned" about the issue, particularly on the question of whether 17 per cent was a reasonable profit margin to be aimed for.
He said that following a review of the extensive report on the matter prepared by council officers, he was minded to support the amendment.
"I feel we have done everything we possibly can to enable, certainly myself, to understand the argument that was being put forward for this change.
"I would only like to say that I do hope as things go forward that we can ensure that through whatever organisations this council is in touch with through its planning function, that 17 per cent is correct, and I hope there are organisations in the United Kingdom that are actively looking at that at all times, to understand whether this is the right thing to do - whether it's the right percentage."
He added that he recognised that in entering into a section 106 agreement, the council is "always effectively in partnership with the developers".
"It is important for us to remember that we need to achieve the best we can for those who need affordable housing," he added.
"I think probably, from the information we have, we are in that position, and I don't think we can do any better at this time."
Another committee member, councillor Anne Glendinning, added that the council also needs to "keep an eye on social housing that we want to be providing", in addition to the delivery of affordable housing.
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