Developers behind Henblas Street apartments seek affordable housing reduction

Developers behind a scheme to convert space above a shopping centre into more than 50 apartments are seeking to reduce the required amount of affordable housing.

Permission was granted in November for proposals to turn offices on the first floor of Henblas Square in Wrexham town centre into 55 apartments.

It was claimed it would help to breathe new life into the largely vacant development, which has been abandoned by several major retailers in recent years, including TJ Hughes, BHS, The Entertainer and Evans clothing.

The Mandale Group has already started work to build 52 one bedroom and three two bedroom apartments above the shops.

However, the company has asked for a requirement to either include 13 affordable units or pay an equivalent amount to Wrexham Council to be removed.

The local authority’s head of planning has outlined their concerns that it would make the scheme ‘financially unviable’.

In a report, Lawrence Isted said: “Members will recall that this application was presented to the November 2018 planning committee meeting.

“It was subsequently agreed with the applicant that a financial contribution would be made towards off-site provision of affordable housing.

“In the intervening period the applicant has approached the council concerned that the requirement for such a contribution that equates to 25 per cent provision will render the scheme financially unviable.

“A financial viability assessment has been provided which has demonstrated that the profit with no affordable housing provision is 16 per cent, which is towards the lower end of a reasonable profit.”

The company has offered to make a contribution of just under £29,000 towards affordable housing at another site.

Mr Isted said the sum was equivalent to around one affordable apartment being created as part of the development.

He has recommended the changes for approval despite it representing a significant reduction on the original agreement.

In a letter submitted on the company’s behalf by planning agents, they said: “Our client is committed to delivering the proposed development, which we consider will have a strong positive impact in terms of contributing towards the regeneration of, and getting more people living in, Wrexham town centre.

“The committee recognised this when approving the application subject to a Section 106 agreement last November.

“However, it is clear from the viability appraisal undertaken that the provision of 25 per cent affordable housing would render the scheme financially unviable.

“The findings of the viability appraisal have been accepted by the planning and housing officers and we encourage the committee to endorse the officers’ recommendation by continuing to support the application subject to Section 106.”

The proposed reduction in financial contributions will be discussed by planning committee members at a meeting next week.

By Liam Randall – BBC Local Democracy Reporter (more here on the LDR scheme).