Reading affordable flats reduction at hospital site refused

Last year, the applicants won approval to build a 26 home apartment block on part of the former Battle Hospital site off Oxford Road.

It involves building a six-storey block with two commercial units on the ground floor, on a site to the rear of the Curzon Club.

Councillor Karen Rowland (Labour, Abbey) called the design for the building “quite dull” when it was approved in January 2021.

But before they began construction, Stonegate Homes applied to reduce the number of affordable homes from eight to three, consisting of two-bedroom apartments and one one-bedroom apartment.

The company had argued that the block would be financially unviable to deliver.

Council planning officer Steve Vigar explained: “Both the applicant and the council’s valuer agree that the current scheme is in significant financial deficit, and based on the figures provided, it would not be financially viable to build, particularly due to the increase in build costs since the previous permission was granted.”

Stonegate Homes had attempted to bring the number of affordable housing to zero, but the council’s planning department was able to negotiate them to three affordable units.

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The council’s affordable housing policy H3 states that developments of 10 homes or more should have 30 per cent affordable housing, which the approved application complied with.

If 30 per cent isn’t provided, it is up to the developer to clearly demonstrate the circumstances justifying a lower affordable housing contribution.

Stonegate Homes had submitted financial viability assessment from chartered surveyors Montagu Evans demonstrating that the project would be in financial deficit if the affordable homes were included.

However, Reading Borough Council’s planning committee were not moved by the argument.

Councillor Jan Gavin (Labour, Caversham) recalled that there was the prospect of a health centre being built on the site, which eventually fell through after it was demonstrated that a new health centre was no longer required.

The site for 26 apartments to the rear of 362 Oxford Road, Reading, on the former Battle Hospital site. Credit: Google Maps

Cllr Micky Leng (Labour, Whitley) said: “This came in with the full 30 per cent affordable housing and then comes back to us with 11.5 per cent.

“It’s not the planning authority’s job to protect developers profits, they should provide the affordable housing element that they agreed to.

“It doesn’t bode well for the affordable housing element when we have our new Prime Minister [Liz] Truss who stated in hustings that she viewed affordable housing targets as a ‘Stalinist Whitehall led initiative.”

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Additionally, cllr Andrew Hornsby-Smith (Labour, Church) said: “I think if we don’t stick with our 30 per cent on this one our credibility in terms of that policy would be down to zero, because this is just about the ideal situation where it could be and should be implemented.”

The reduction of affordable apartments was unanimously rejected by the council’s planning committee yesterday (Wednesday, October 5).

The future of the development is unclear given evidence that it may be unviable.

The approved plan can still be viewed by typing reference 201391.