Ruling boost for Shropshire housing developments

Builders will no longer be forced to pay a council levy of up to £18,000 per every house they build.

The ruling could open the floodgates to small-scale developments on fields, pub car parks and the gardens of existing houses.

Planning inspector Tom Cannon ruled that an applicant looking to build five houses in Shrewsbury did not have to make an affordable housing contribution - a decision that goes against Shropshire Council policy.

It is likely to affect any future development of up to 10 houses or less – 90 per cent of applications submitted to Shropshire Council – making it more attractive to start building work.

One eyesore site that could benefit is one planned for the fire-hit Lea Manor Hotel on the A464 near Albrighton.

Plans for seven homes on the site have stalled because the owners said the £81,900 bill they faced as part of the affordable housing contribution did not make it cost-effective.

Shropshire Council had gone against Government advice not to charge the £18,000 levy on small developments. Telford & Wrekin Council has already waived the levy.

The council is now taking legal advice on the ruling and considering whether to change the policy.

Mr Cannon made the judgement when considering an appeal against Shropshire Council's refusal to grant planning permission for five houses at Vashlyn, Copthorne.

The appeal was granted but Mr Cannon also said the applicant would not have to make an affordable housing contribution because of Government policy.

Stuart Thomas, head of planning at chartered surveyors Berrys, which brought the appeal on behalf of a client, welcomed the decision and said it would open the door for other schemes.

He said: "This is a highly significant planning decision in Shropshire. Until now the council had provided applicants with an ultimatum on affordable housing, making it clear that they would refuse schemes if affordable housing contributions were not forthcoming.

"This appeal decision unequivocally states that government policy must take precedence and will force the council into reconsidering its position on this matter. I am delighted about the the decision, which will open the doors for other impending schemes."

The Federation of Master Builders said that a change in policy would remove the barriers to small developments.

Sarah McMonagle, head of external Affairs at the FMB said: "We are currently building around half the number of new homes we need to keep pace with demand – this ruling will help change that as Shropshire Council will now uphold central government's decision to make the very smallest housing developments exempt from paying this fee.

"Affordable housing contributions disproportionately impact on small sites and can make them altogether unviable. By removing these sorts of barriers to small house builders, we can begin to increase the number of homes Shropshire, and the country as a whole, so badly needs."

The Lea Manor Hotel land was put up for sale with planning permission for seven homes by the a private individual owner.

Jannette Bevin, who works for the owner who did not wish to be named, said they had fought for 10 years to get planning permission but due to extra charges by Shropshire Council it was decided to put it on the market.

She said: "We have done nothing but try to approve the site. It was no longer a viable prospect for the owner. No one wanted to buy it because of these charges."

Shropshire Council was today unavailable for comment.