The Battersea Power Station Development Company has submitted variations for the delivery of affordable housing at the scheme that could reduce the number of affordable units by 40%.
In a deed of variation to the s106 agreement, BPSDC is proposing to delay the construction of 250 units until later phases of the scheme, when it will conduct a viability review.
If the scheme’s IRR is down, it will look to reduce the number of affordable homes in the final 250.
The current s106 agreement requires 636 affordable housing units out of the total 4,239 units across the masterplan – which amounts to 15%. They will be staggered across the scheme as follows: 103 units in phase 3b; 386 units in phase 4a; 147 units in phase 5.
Under the variation, BPSDC is looking to move the 103 units from 3b to a later phase, combined with the 147 in Phase 5. Phase 4a would be delivered earlier.
The final 250 would be subject to an end-of-scheme review to determine whether they would be financially viable.
The submitted documents said: “The review mechanism would be designed to go up or down. The top level of affordable housing that could be provided as part of the masterplan would to be capped at 33%.
“This would be in line with the minimum the council expects across the rest of the borough. The lowest level of affordable housing that could be provided as part of the masterplan would be 9.1%, which relates to the 386 units in Phase 4a.”
However, were any surplus to be generated to the IRR, this would not result in any more affordable housing. Instead any surplus would “be provided in the form of a commuted sum in lieu of the additional affordable housing.”
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