Developers aren't so daft.
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Posts
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It is the oldest trick in the developers’ book. Get planning permission for development and then start asking for special treatment and favours as soon as the ink is dry, with the unspoken threat that otherwise they will walk away. Late last year they agreed on the basis of supplying 13 affordable units, yet within a few months, they have managed to look at their profit margin, decide it is not enough and ask if WCBC would turn a blind eye and let them not bother with 12 of the units. why was it profitable enough in late 2018, but now in January 2019 it is not? Has housing market collapsed that much or is it the case that the standards for ‘affordable units’ might actually be higher than those for the ‘free market’ properties. To be honest, the whole lot should be affordable, because anyone who takes on 100% of the responsibility for one of these apartments, will not only have a rubbish home, it will be a stinker of an investment as well, except for ‘buy to let’ landlords.
Totally agree with the original post. The Committee should again make a stand for their constituents and tell the developers and the WCBC Planning (lack of) Dept that the original, approved application stands in its agreed form. Call the developers bluff as a lesson for all future developers that may try to scam the Committee due to their perceived lack of intelligence and guts.
The issue is that the developers know full well that they have the council decision makers over a barrel – it’s either threaten to pull out and leave Henblas a ghost town or the council accept a concession where they remove requirements. It might take them months or years to find another developer and in order to push through further redevelopment in the town centre they need someone to take up this project.
It’s unfair on the area and unfair on those who seek affordable housing, but this is the price we pay for living in such a profit driven capitalist environment. Of course this is not to say that this won’t backfire on the Mandale Group where locals feel completely alienated by the lack of available affordable properties at the development or an equivalent lack of good-will in terms of funding the placement of affordable homes elsewhere in the county. People have been notoriously critical of Eagle’s Meadow the whole time the development has been in existence and they run the risk of becoming the next public target for criticism and lack of local support.
What exactly is the definition of “affordable housing”? Will the flats in the Henblas Street development be larger than shown in the planning application or will they be the same size but more expensive ?
The government definition of affordable housing states it must be provided at a level at which the mortgage payments on the property should be more than would be paid in rent on council housing, but below market levels.
This is probably down to basic business economics – the prediction of getting retail into the units has not worked – each of the units are still available – only the old BHS has actually got a secured tenant all the others are still available on the landlord’s web site. They had already cut the rental costs so the cost per sq ft are some of the cheapest across Wrexham.
Any developer will have a breakeven and then move into profit on the whole site – as the retail is not looking to positive, they have looked at recouping their investment return by moving away from cheaper units.
The plus point for Wrexham is that the reduction in affordable accommodation means more income from rates.In a parallel universe, Mandale would actually look at making the retail units smaller so that starter and small businesses could consider taking them on. Perhaps even tying in the lease of a retail unit with the lease of an apartment. Instead they are building a ghetto of single room flatlets. I don’t wish like to wish ill on any scheme in our town, but the total flattening of the Ty Henblas building and a rebuild fit for the 21st century is what is really needed involving also the bomb site that was the old Hippodrome. Even turning the site into a public park linking the Guildhall, Ty Pawb, the markets and Queen Square would be an improvement on the mediocre dead shopping complex that is there now.
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