Housing plans abandoned as economic woes hit builders

The economic downturn has left the nation’s construction industry in tatters, and several developers in York are attempting to dramatically revise planning conditions attached to housing schemes to ensure the projects remain financially viable.

Members of York Council have already agreed to an application from developers to reduce the number of affordable properties on the former Terry’s chocolate factory, which is one of the region’s biggest re-development projects. The council’s cabinet member for planning, transport and sustainability, Councillor Dave Merrett, confirmed talks are under way with construction firms behind other major house-building programmes in the city, which is one of Yorkshire’s property hotspots, that could see affordable homes targets also reduced.

He said: “We have got to work with where we are, rather than what we want. We are trying to ensure we get as many affordable homes built as we can, but we have to be realistic. We are having discussions with developers, and we will consider revising targets if they can prove they have a case.”

York Council’s planning committee agreed last Thursday to an application from developers GHT Developments following a formal application to reduce the amount of affordable homes agreed from 30 per cent to 25 per cent in the £200m development.

The company bought the 27-acre site for £26m in April 2006, but the decision was taken in March to put the estate back on the market. Speculation has been mounting over the site’s future after the chocolate factory – which used to make All Gold and Chocolate Oranges – closed in 2005 when production was transferred to Europe with the loss of more than 300 jobs.

Work began in March this year to prepare the factory site for the regeneration to start. But the estate was put back on the market less than three weeks later. The re-development is expected to create more than 2,700 jobs and will include 200,000 sq ft of offices and a total of 271 homes. It will also include a hotel, a medical centre and a care home.