Four developers are facing a £2m legal action for allegedly failing to provide social housing in their residential schemes.
Arun council is seeking up to £2m in damages or an injunction forcing four companies within the Hargreaves Group to offer affordable homes on development sites in West Sussex, as required by their respective planning consents.
According to the high court claim, Hargreaves Homes and Hargreaves Residential Developments have failed to provide 11 of 54 homes at The Leas in Station Road, Rustington, to social landlord Servite Housing Association.
The council also alleges that, in a separate 67.6-acre scheme near Roundstone Lane, Angmering, related companies Hargreaves Securities and Hargreaves Investment Properties were required to provide 30 affordable houses to Southern Housing Group.
In justification of its £2m damages claim, the council says that losing Hargreaves’ affordable housing provision will cause “knock-on effects on its expenditure on provision for people in need of housing”.
Hargreaves Group, which was unavailable for comment, is expected to defend the claim on the ground that the developers were released from their social housing obligations after Servite and Southern Housing failed to respond to offers of affordable housing within the time-limits specified in planning agreements with the council.
However, the council claims that offers made to the social landlords by the Hargreaves companies were merely “invitations” to enter into negotiations and did not even specify a price.
It says that the time-limits are still valid but that the developers have refused requests made in October for them to carry out their obligations.
A council spokesperson said: “This is a simple case. Local authority housing is important for all district councils.”
Hargreaves Group is not related to the Hargreaves Homes owned by McInerney Group.
References: EGi News 22/08/05
