Developer offers council extra 拢2m for affordable housing

Sheppard Robson鈥檚 development on the former Middlesex Hospital site in Fitzrovia London, thought to be worth up to 拢750m, has received conditional planning permission after the developer offered an extra 拢2m to the council鈥檚 affordable housing fund.

The future of the scheme, which is also designed by architect Lifschutz Davidson Sandilands, , after Westminster council deemed that the developer Exemplar Properties designation of just 54 of the 291 homes - or 17.4% of the total residential floor space in the scheme - as affordable was 鈥渦nacceptable鈥.

The council insists that 25% of homes on new developments are affordable. The developer had offered to pay 拢2.09m in the council鈥檚 affordable housing, but the council had insisted that this was not enough and should be increased to 拢6.1m.

But last night the council鈥檚 planning and city development committee voted unanimously to give the scheme conditional planning permission after the developer offered a further 拢2m towards the council鈥檚 affordable housing fund.

Councillor Alastair Moss, chair of the committee, told 好色先生TV that the proportion of affordable housing on site would remain the same but the contribution to the affordable housing fund had risen to 鈥渘early 拢4m鈥, which the committee had accepted.

Moss added that the developer had also increased its contribution to the cost of repairing and restoring the grade II-listed Victorian chapel, which is preserved within the plans, from a proposed 拢50,000 to 拢300,000, as had been asked by the council.

好色先生TV understands the developer has drawn up a shortlist of contractors for the job that includes Balfour Beatty, Mace and Sir Robert McAlpine.

The site is one of the largest in central London and was once part-owned by the Candy Brothers, who dubbed the development 鈥楴oHo Square鈥 after a property development in New York City.

Development halted after planners rejected the scheme and Kaupthing went into administration, after which the Candys swapped their 33%stake for a stake in a Beverly Hills development also owned by the Iceland bank.

Architect Sheppard Robson was chosen to design the smaller development, which also includes shops, a school and a medical centre.

Kaupthing and minority investors Aviva and Exemplar dropped the much-maligned 鈥楴oHo鈥 name, which was derided by residents around the site in Fitzrovia.

Councillor Moss said he hoped the project would not move ahead quickly. 鈥淚 hope they will get it on with it. It is the right scheme for the site and we want to see it developed,鈥 he said.