Agenda item

To consider an application to modify the original planning obligation which applied to three properties; by discharging the agreement relating specifically 11 Rhos Helyg, Llandrillo (copy attached)

An application was submitted to modify the original planning obligation which applied to three properties: by discharging the agreement relating to specifically 11 Rhos Helyg, Llandrillo.

Public Speaker –

Mr Alwyn Jones Parry (for) – stated that 11 Rhos Helyg was not an affordable house and the owner could not sell due to the strict S106 obligation on the property.  Most lenders would not provide mortgages on a property with a S106 obligation.  Grwp Cynefin had been approached to purchase the property but a response was still awaited.

General Debate – The Local Member, Councillor Mabon ap Gwynfor, put forward his views in supporting the application for the removal of the S106 obligation from the property.  The S106 obligation placed on 11 Rhos Helyg had been one of the first of its kind within Denbighshire and the Local Member stated that rather than assisting families to move up the property ladder, the S106 restricted them.  There would be an issue for any prospective purchaser to be able to get a mortgage on the property due to the restrictive nature of the S106.  The family concerned had stated upon the sale of the property they would make a contribution to the community as they wanted to move to a larger house to accommodate their growing family within the same estate.  They had purchased the house as an affordable house and were not looking to make a profit. The family would be supported by the Community Council if Grwyp Cynefin bought the property and it could become an affordable rental within the community.

Councillor Tony Thomas suggested deferral of the application but the Development Manager explained the Applicant was keen for the matter to be discussed at the Committee meeting due to the time element.  At this juncture, Councillor Thomas withdrew his request for a deferral.

The Development Manager thanked the Local Member for his explanation of the situation as it was a complex issue.   He introduced the Local Housing Strategy and Development Officer who was in attendance as she was an expert on affordable housing.

As the property had not been marketed it had been difficult to ascertain whether any local people would be interested or able to purchase the property.  There was no-one registered currently on the affordable housing register for Llandrillo, but it was possible there were people registered within the wider area referred to in the S106 Agreement.

The S106 currently in place on the property obliged the owner to advertise the property in the local paper and to restrict the sale of the property to a local person in housing need for a period of 12 months.  It was possible to reduce the length of the restrictive marketing period down to 20 weeks if the current owner had requested it.  The owner had been advised of this during discussions.

There was a suggestion a Deed of Variation could be drawn up to address the issues the owner felt was preventing a sale rather than removing the S106.  Marketing the property through the Affordable Housing Register and Rightmove/On the Market rather than advertising in the local paper, as internet advertising was now the first point of call for people seeking to purchase a property would be more appropriate.

Grwp Cynefin who own the other two affordable properties on the development were currently undertaking a financial viability and housing need assessment, prior to confirmation of their willingness to purchase the property.

Proposal – Councillor Merfyn Parry proposed not to remove the Section 106, seconded by Councillor Peter Evans. 

VOTE:

REMOVE THE SECTION 106 -                        1

ABSTAIN      -                                                 5

NOT TO REMOVE THE SECTION 106 -          13

RESOLVED that permission be REFUSED in accordance with the officer recommendation.