A housing developer is looking to ditch its commitment to building affordable homes on the estate its constructing.

Members of Swindon Borough Council’s planning committee will debate and decide on a planner’s bid to be freed of an obligation to build affordable houses on a new housing development.

It is Swindon Borough Council’s policy that the largest housing developments come with a condition in the planning permission to build a third of the homes as ‘affordable’ units – meaning they are made available for rent at 80 per cent of the market value.

Developer Lagan Homes has taken over an irregularly shaped site south of Marlborough Road from Hannick Homes which was given planning permission for 70 houses in 2020.

 That number of homes has now been reduced to 61 houses,  which would mean the 30 per cent obligation would be 18 affordable units.

But Lagan Homes says it cannot make sufficient profit in building the site out if it has to stick to that condition.

It says: “Providing 30 per cent affordable housing and maintaining the other obligations would not be viable, as the outturn residual profit margin generated equates to just 6.65 per cent.

The company says: “The report clearly demonstrates that the development is unviable if we provide the full policy compliant level of affordable.

"That report was undertaken in August and clearly since then, the economic situation has changed for the worse.”

In the report to members of the committee, borough council planning officers say they have been in talks with Lagan Homes, and the outcome is a proposal that the developer gives the council £720,000 instead of building the affordable units.

A complicating factor, however, is the developer is seeking a judicial review of the council’s refusal of a previous attempt to remove the affordable home condition.

The report to councillors says: “There is a danger that should the planning committee now approve the modification of this S106 deed that would prejudice the council’s defence of the judicial review should the applicant not agree to the consent order and instead pursue the judicial review.”

Nevertheless, the recommendation is to agree to the compromise and vote to accept £720,000 in lieu of affordable homes as: “This would enable the provision of additional affordable units on land owned by the Council as part of schemes that it brings forward through its portfolio of sites controlled by the Swindon Housing Company.

"It is recommended that this offer is accepted with the remaining undeveloped part of the site reverting to market housing.”

The planning committee meeting starts at 6pm on Tuesday, September 10. Members of the public are entitled to attend.