Housing developers threaten to boycott Bournemouth (From Bournemouth Echo)

Housing developers threaten to boycott Bournemouth

7:00pm Friday 27th November 2009

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DEVELOPERS are threatening to boycott Bournemouth and bring the housing market to a standstill if new rules on affordable housing get the go-ahead.

The area’s biggest private landlord, Dave Wells, is one of a number of developers who says he will not submit any more planning applications if the proposal gets the green light.

And experts are warning this could have disastrous effects for the town, including a rise in house prices that makes it even harder for first time buyers to get a foot on the property ladder.

Currently the council only seeks affordable housing contributions from developers who are building 15 or more dwellings – a policy which has seen 95 per cent of development fail to deliver any affordable housing.

The council now plans to ask for up to 40 per cent affordable housing on all developments of one or more additional dwellings.

But developers say the new policy will deter developers from building any new homes at all. Mr Wells said: “Having to give 40 per cent in either housing or financial contributions will make big schemes unviable for most developers and there’ll be a halt to building in the town, crippling an already struggling construction industry.

“It will also lead to increased demand for housing and ultimately a rise in homelessness and increased use of low-quality bed and breakfasts.”

Planning agent Ken Parke agreed: “There will be no new development and the existing stock will get older and will not be replaced.

“No other authority in the country has a policy like this and most developers have said they’re just going to stop building in Bournemouth altogether.”

Peter Tanner, of Tanner and Tilley, predicted house prices would rise because home and land owners would not sell sites if developers could not offer top prices.

He acknowledged many residents would welcome a reduction in development but said this was short-sighted.

“Development generates employment over a vast range of trades. If the building trade starts to lay off skilled workers, those skills over a period of time will be lost to the industry for good.”

Tony Williams, the council’s executive director for environment and economic services, said the policy would help cut the 7,000-strong housing waiting list.

“It has been approved by a government inspector who considered the effects of the policy and concluded that it would not ‘have an undue impact on sites being brought forward as development viability can be maintained’,” he said.

“Whilst we appreciate the concerns of some developers this policy has been produced over three years and in consultation with the development industry.”

He added the policy contained a viability test, which could see the affordable housing requirement reduced or removed altogether.

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