Agenda item

            That the terms and relevant clauses of the Section 106 agreement entered into in connection with planning permission ref. 041741 dated 17^th December 2007, be amended to allow for the occupation of the 3 no. dwellings via a Rent to Buy scheme.             

The Committee considered the report of the Head of Planning in respect of this application.  The usual consultations had been undertaken and the responses received detailed in the report.  

            The officer detailed the background to the report and the explained that this application was to make the three remaining units upon site available for occupation by qualifying persons via a ‘rent to buy’ scheme.  The major obstacle was that those who satisfied the criteria for the current shared ownership scheme had difficulty in obtaining mortgages and therefore the amendment to the section 106 agreement to the ‘rent to buy’ scheme was proposed, which he provided details of.  He also added that the amendment to the section 106 agreement did not preclude someone undertaking the original 106 agreement. 

Councillor H.G. Roberts proposed the recommendation for approval which was duly seconded.

            Councillor W.O. Thomas referred to the two applications listed under the site history and said that a lot more activity had taken place on the site and he queried why the application was before the Committee at this time.  He referred to another application on the agenda which reported that there were 31 applicants on the social housing register indicating Lixwm as their preferred location so he felt that there were people who wanted to live in Lixwm.  The officer reiterated his comments that people did want to live in the area but were unable to access mortgages.   Councillor R.C. Bithell referred to paragraph 8.01 and the main principle of Policy HSG11 that “houses will remain affordable in perpetuity for those in need……”.  Councillor C.A. Ellis queried why the applicant could not drop the price of the three remaining units.  Councillor M.J. Peers concurred and said that there was no mention in the report of what alternative methods had been explored for the remaining units.  He felt that if the shared ownership scheme was in place at 70/30 then occupiers would be paying off a mortgage from the start of the scheme rather than putting a portion of the rental payment towards a deposit.  He asked whether there were better options. 

            Councillor A.M. Halford said that things had moved on dramatically since the decision was taken for the shared ownership scheme in 2009 and she felt that the officer recommendation was sensible.  Councillor P.G. Heesom felt that the developer should go with market forces and reduce the price of the properties rather than requesting an amendment to the section 106 agreement.  Councillor D. Butler was concerned that if the decision could not be site specific then it could set a precedent for other developers to request amendments to section 106 agreements. 

            The Head of Planning said that permission had been granted for 25 properties and that 22 of the dwellings had been occupied.  The market had been exhausted on the basis of the tenure offered and he added that the 31 people on the social housing register for Lixwm were for a different tenure which was to rent a property as they could not afford or did not qualify for a mortgage.  The rent to buy scheme allowed people to move up the ladder by saving a deposit pot and did not mean that the properties would cease to be affordable. 

            On the issue of lowering the price, the officer said that the properties were already offered at 70% of the market value.  The modification to the agreement would enable people to put forward a deposit to assist them to become owner occupiers.  

            RESOLVED:

            That the terms and relevant clauses of the Section 106 agreement entered into in connection with planning permission ref. 041741 dated 17^th December 2007, be amended to allow for the occupation of the 3 no. dwellings via a Rent to Buy scheme.