Court ruling may lose Shropshire millions

Councillor Mal Price, Shropshire Council's cabinet member for planning, says that a ruling, which supports Government policy on affordable homes developments, will have significant consequences for the county.

The decision means that developers building sites made up of 10 homes or fewer will no longer have to pay an affordable homes contribution.

Councillor Price said: "Looking at the schemes we have we will lose several million pounds on affordable homes use."

However, the matter has been complicated after Shropshire Council was given notification that it had been successful in a bid to have several areas of the county officially designated as "rural".

The status means that in areas listed as rural the affordable homes levy can be applied on developments of more than five homes.

Councillor Price said the authority was disappointed with the decision but would accept it and change the way it deals with applications accordingly.

He said: "We have taken legal advice and have decided as an authority we will go with the judgement and anyone coming forward for schemes with 10 or fewer will not normally be expected to pay the affordable housing levy, although some circumstances may change that.

"Yes we are extremely disappointed and frustrated by the decision that has been made but some times you learn you have to accept it."

Due to its rural nature Shropshire has a large proportion of housing developments that fall bellow the threshold set by Government for affordable homes.

Since the judgement was announced the authority has fielded calls from a number of applicants wishing to find out if it affects their application.

Councillor Price said that any schemes for 10 or fewer houses now being approved would not be required to make the contribution.

However, those that have already signed 106 agreements containing the contribution will be required to honour the agreement.

The policy, created by housing minister Brandon Lewis, had been challenged by West Berkshire District Council and Reading Borough Council.

Speaking after the court of appeal ruling he pulled no punches. He said: "This case was a total waste of taxpayers' money and the uncertainty the case created among housebuilders stalled new development from coming through. I hope councils focus their time and money on delivering the front line service that their residents rely on and helping support new housebuilding in their areas that is very much needed."