Five major Birmingham projects that fell short of affordable homes target

Birmingham City Council has admitted "very few schemes" reach the 35 per cent affordable housing target

In the city council’s own words, “very few schemes” in Birmingham reach the local authority’s own target for affordable housing. Just this year alone, many major developments have been given the green light despite falling short.

The local authority's current local plan has a target of 35 per cent affordable housing on all schemes over 15 homes. But a spokesperson for the council acknowledged this month that “it is often not financially viable” for a developer to reach this.

“The council has to consider financial constraints when making planning decisions,” they said. “Each planning application is considered on its own merits in line with our Local Plan and national policies.

READ MORE: Birmingham property schemes approved despite 'very few' hitting affordable homes target

“Our aim is not to water down the need for affordable housing but to set honest, transparent and realistic targets for developers". The spokesperson continued that demand for homes in Birmingham was at an “unprecedented high”.

“The surge in demand for housing is driven by several factors, including the cost-of-living crisis, as well as rises in rents making the private rented sector unaffordable for many," they said. “ Birmingham City Council fully recognises the need for more affordable homes and is pursuing every avenue to produce more.

“However, our current rate of house building cannot keep up with the current level of demand. For this reason, we will work with private developers to find new and innovative ways to produce affordable homes, and we are lobbying the government to agree on a fairer funding settlement to build new council homes and to reform the right to buy."

Amid the intense demand for housing in the city, here’s a look at five of the developments that fell short of this particular affordable homes target - and why they were approved.

1) 90-97 Broad Street

One decision which was particularly controversial was the city council approving a 47-storey tower in Broad Street, set to boast 525 homes. At a meeting back in March, councillors praised the design of the development but also expressed disappointment at the percentage of affordable homes included within the scheme, which was four per cent of the total apartments.

Andy Street, the former West Midlands mayor, was also frustrated, writing on social media at the time: "Just 4 per cent affordable is utterly shameful". A council’s officer report said the scheme has been through a “thorough and independent assessment”, which established that the development could “sustain an affordable housing contribution of six per cent without becoming unviable".

However, it continued: “With a 20 per cent discount it will be difficult to secure tenants that meet the eligibility requirements in relation to household income. It is therefore recommended that a deeper discount of 30 per cent is secured which will reduce the provision to 4 per cent (21 dwellings).”

In response to concerns raised in the meeting, planning committee chair Martin Brooks said: “As a committee, we’ve constantly flagged up the desire to meet our targets in terms of affordability and this does fall well short of that. But the problem is we’ve had a financial viability assessment which backs up the facts and then that makes it very difficult to argue something differently.”

A council officer's report added that the scheme would make a “meaningful contribution” towards Birmingham’s housing shortfall and provide economic, social and environmental benefits.

2) 100 Broad Street

This 33-storey skyscraper, at 100 Broad Street, is set to provide 294 homes as well as communal amenities after being given the green light earlier this year. The plans were approved on the condition that 3.1 per cent affordable rental units were provided - an offer one councillor described as ‘incredibly disappointing’.

“There are costs to developers that count against affordable housing,” coun Martin Brooks said at the time. “There is a balance to be achieved.”

A report by a council officer also noted that the proposed residential units “would make a meaningful contribution towards Birmingham’s housing shortfall and contribute towards the regeneration aspirations for this part of the city centre". A viability appraisal was also submitted and appraised by an independent assessor as part of the application.

3) Hagley Road skyscraper

Plans to build a 37-storey skyscraper near a busy Birmingham road were approved in the summer. The council officer’s report said that as part of the development, a financial contribution of £1.9 million had been put forward by the applicant, which is to be used to provide affordable housing off-site.

“This is the equivalent of providing circa 8 per cent affordable housing on-site,” the report said. “The contribution is backed by a robust financial viability assessment which has been independently verified by the council’s financial consultants".

Addressing concerns over affordable housing, planning officer Idris Gulfraz told a planning meeting: “This actually started off as an on-site contribution of around 2 per cent. It’s through various negotiation over the past couple of months that we’ve been back and forward with the applicant trying to increase that offer.”

“At no point was the applicant kind of pushing for this to be off-site - that was a council decision if you like,” he continued. “The good thing about spending [the £1.9 million contribution] off-site is we can actually address our housing shortfall elsewhere within the city.”

Summing up why the proposal had been recommended for approval, the report said it would see the development of a vacant brownfield site and that the new homes would suit a range of future occupiers.

4) Edgbaston apartments

Plans for a development with new apartments and townhouses in Edgbaston were approved earlier this month. However, they attracted the criticism of Coun Gareth Moore during a planning meeting, who said: “We need to build more homes but we need to build the homes the people of this city need, not what developers want to put forward.”

On affordability, a council officer’s report said an independently-assessed appraisal concluded the scheme could not support any affordable housing or off-site contributions. However, after significant negotiation, the applicant was able to offer three affordable housing units (9.4 cent).

The report said: “The Affordable Housing team has identified the preference for the city would be for an increased amount of affordable family sized homes. However the proposed offer of one and two-bedroom properties would be in line with the need of the ward of Edgbaston and as such would be acceptable for this development".

Ralph Minott, masterplanning and development Director at Calthorpe Estates, said it was committed to “delivering high-quality residential homes that align with the evolving needs of the local community and the city”.

5) Ringway Centre

Controversial proposals to demolish Birmingham's landmark Ringway Centre and replace it with three huge apartment blocks were approved subject to a legal agreement that ensured the equivalent of 20 per cent affordable rental units. A Birmingham council report added: “In the event additional grant funding is not secured to deliver the equivalent of 20 per cent affordable housing, then the equivalent of a minimum 15 per cent affordable housing units shall be provided on site.”

It was also noted that the development would make a “meaningful contribution towards Birmingham’s housing shortfall” and help regenerate that part of the city centre. Developers Commercial Estates Group (CEG) said it would enable "significant investment into Birmingham", with its head of residential development saying: "New public spaces will revitalise the area, attracting new visitors and boosting local businesses".

A financial viability appraisal for the development was assessed by independent consultants.

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