A RETIREMENT housing developer faces the possibility of sanctions after an “error” which would have made it harder for residents to buy a bigger share in their affordable homes.

Platinum Skies – which has previously paid Bournemouth West MP Conor Burns and former Bournemouth council leader John Beesley for advice – said it flagged up the problem itself during a review a year ago.

The company, also called Affordable Housing and Healthcare Group, admitted that some clauses in shared ownership leases were “not fully compliant” with requirements laid down by Homes England, which had provided funding towards the developments.

Shared ownership residents buy a share of their home and pay rent on the rest – but they can later buy a bigger stake in the home, a process called “staircasing”.

Analysis of 50 leases by The Times found that any tenant that may have wished to “staircase” faced fees of up to 10 per cent of the property’s market value each time they increased their stake. Staircasing was limited to a 10 per cent share each time.

A spokesperson for the company said: “Following an internal compliance review in April 2021, Affordable Housing and Healthcare Group became aware that its Older Person Shared Ownership leases contained clauses relating to staircasing rights, that were not fully compliant with Capital Funding Guide requirements.

“The inclusion of these clauses was made in error. AHHG fully supports the rights of customers to staircase. Several months ago, we began writing to customers whose leases contained clauses with staircasing event fees, to inform them that these fees would not be charged. To date, these clauses in question have not caused any detriment to our homeowners.

“Work is underway to amend each lease and remove the relevant clauses, with all reasonable legal costs covered by AHHG.”

The spokesperson added: “We will continue to work tirelessly in building cherished homes our customers can afford, in supportive communities in which they can thrive. We’re proud that the overwhelmingly positive feedback we consistently receive from residents across our developments attests to this.”

A spokesperson for Homes England, the government agency that funds affordable housing, said: “It’s been brought to our attention that the conditions of our grant funding have been breached.

“The Affordable Housing and Healthcare Group must establish the full extent of the breaches and provide remedy, which we will expect to be urgently actioned. As with any case where there has been prohibited or unacceptable activity, we will issue appropriate sanctions.”

Platinum Skies developments include Vista in Lower Parkstone, Esprit in Poole, Monterey in Christchurch and Platinum Skies Sherborne.

The Affordable Housing and Healthcare Group has been chaired since November 2021 by former Conservative Party treasurer Lord Fink and its board includes former Royal Bournemouth and Christchurch Hospitals boss Tony Spotswood.

Its parent company, Quantum Group, previously hired Bournemouth West MP Conor Burns as a consultant. He received £6,250 quarterly for six hours’ work per month, from December 2015 to July 2017.

From February to July 2019, he earned £12,500 for six hours’ work a month advising Affordable Housing and Healthcare. He dropped his outside interests when he became a government minister. 

Cllr John Beesley, then leader of Bournemouth Borough Council, declared his interest as a non-executive director of Platinum Skies, resigning in July 2018.

There is no suggestion of any wrongdoing by Lord Fink, Cllr Beesley, Mr Burns or Mr Spotswood. 

Mr Burns and Cllr Beesley have been approached for comment.