Millions of pounds worth of affordable Surrey homes remain unbuilt because nobody is willing to take on the project. It has left Spelthorne Borough Council scrambling around trying to find a housing partner with negotiations set to take place over a potential rent to buy scheme.
It leaves families dangling in limbo on waiting lists with nowhere to go as there are almost 2,500 people are currently on Spelthorne’s housing list.
It comes as the developers behind a massive Staines Tower block withdrew all affordable housing from the scheme and instead only offered the council money to put towards low-cost homes elsewhere in the borough.
The Elmsleigh Road scheme was given the green light on appeal in 2022, after Spelthorne Borough Council had refused the application the previous year. The site, at the Old Telephone Exchange, is still under construction by the developer, Fairview New Homes.
Developers, Fairview, asked the council to remove affordable homes from its plans for 206 new units in two towers in Staines, and agreed a £3.85m contribution to go towards off-site affordable housing, instead of the 70 homes that were originally planned.
However, the council opted to delay accepting the money and approached a rent-to-buy provider, Rent Plus, to potentially take the affordable housing off its hands. Cllr Lawrence Nichols (Liberal Democrat/ Halliford and Sunbury West) told a planning committee on January 8: “If we take the [developer’s] money, Rent Plus walk away.”
Rent Plus buys affordable homes from developers at a discount, and then leases them to low-income families on the waiting list with the long-term plan of buying them.
The council had previously rejected using Rent Plus because the company did not provide housing to “the most needy” in line with the council’s legal requirements, the Housing Officer told the committee. Cllr Nichols said Spelthorne council has a meeting with the provider, Rent Plus, scheduled for January 14, next week.
The developer told the committee it had approached numerous registered providers for affordable housing but there was “no interest from any to take the residential units”. There were four separate tender processes and during the most recent, 81 parties were approached. Only 21 responses were received and all declined the opportunity to purchase the homes.
Speaking at the meeting, Director of Affordable Housing for Fairview New Homes Jonathan Millership, said: “The responses highlighted several issues that were specific to this development; these include the high rise nature of the building and the inclusion of a single staircase, a lack of appetite for flats in tall buildings outside London and a general lack of appetite for developer-led section 106 schemes.”
But councillors were not impressed. Cllr Katherine Rutherford (Independent Spelthorne Group/ Ashford Common) said the company “should have done their research”.
Cllr Darren Clarke (Conservative/Laleham and Shepperton Green) said: “Built the wrong thing in the wrong place to the wrong standard, but people don’t want them.” He added: “We all want affordable housing [and] we’ve got a real housing crisis.”
The council had also considered accepting the £3.8m and putting in its s106 pot for building community infrastructure. Officers explained the council could then use this to buy homes in the borough and then rent them out as affordable housing, generating a profit.
Councillors eventually decided to defer the decision on whether to accept the developer’s contribution until the next planning meeting in February 2025.