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The developer behind a new housing development in Catterick Garrison has said soaring construction costs are behind its controversial attempt to remove more than £240,000 earmarked for local schools and play areas.
Summerhouse Development Ltd has applied to North Yorkshire Council to modify the Section 106 agreement attached to the 67-home Hipswell Croft development, off Hipswell Road.
The application seeks to remove a £220,935 education contribution, as well as a £22,000 payment towards recreation facilities and part of the scheme’s affordable housing requirements.
The move was previously branded an ‘absolute disgrace’ by local councillor Kevin Foster, who said infrastructure contributions were badly needed in areas where new homes were being built.
The developer has now explained why it believes changes to the agreement are necessary, saying significant increases in construction costs since the original planning application have affected the financial viability of the development.
A spokesperson for the developer said: “We remain committed to delivering a strong, sustainable community providing much-needed housing for the area.
“Unfortunately, since we submitted our original planning application, and in common with many private developers, construction costs have increased significantly, which is why we are submitting a request to review the Section 106.
“The homes, the specification, and the delivery of Hipswell Croft remain exactly as promised. It’s a great development, and we’re proud to be bringing it forward.”
Planning permission for Hipswell Croft was granted in February 2020, with the development originally proposing 52 market homes and 15 affordable properties.
As part of the permission, the developer agreed to make the £220,935 education contribution after the council's education authority said the development would generate additional demand for places at Hipswell Church of England Primary School.
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The £22,000 recreation contribution was intended to improve existing play and recreation facilities in Hipswell rather than provide an equipped play area within the development itself.
The developer has submitted a cost analysis in support of its application, arguing the existing obligations have made the scheme financially unviable.
The application to modify the agreement remains under consideration by North Yorkshire Council.