London,
04
October
2018
|
15:10
Europe/London

Camden secures additional funding for affordable housing in the borough

A property company developing a scheme in the borough has agreed to pay Camden Council an additional £3.5 million in Section 106 payments, to be used for affordable housing.

The developer Regal Homes had initially claimed that following a financial viability review of the multi-million pound housing development, located at 277A Grays Inn Road, they had no legal responsibility to make any further payment to the council.

Councillor Danny Beales, Cabinet Member for Investing in Communities
“Local authorities are often accused of allowing developers to avoid their affordable housing responsibilities by accepting viability evidence without further interrogation or questioning. Camden ensures that the figures presented by developers are thoroughly and independently scrutinised. 

“The evidence provided by this developer to back up their claim that they were not liable to make this affordable housing payment was inconsistent and appeared to be exaggerated. The council therefore threatened legal proceedings to enforce the Section 106 payments. Consequently, Regal Homes agreed to pay £3.5m outstanding contributions to the council. This vital funding will support more genuinely affordable housing being delivered by the council. 

“This case sends a strong message to all developers who are considering projects in the borough, and demonstrates that we will always ensure that we hold developers to all their obligations including affordable housing.”
Councillor Danny Beales, Cabinet Member for Investing in Communities