Grosvenor’s 885-home regeneration of Barton Park, Oxford, could be scaled back after Oxford city council announced a £33.6m funding shortfall resulting from government policy changes.
Barton Park, a joint venture between Grosvenor and Oxford city council, included plans for 354 social housing units, which the council had agreed to purchase for an estimated £52m by 2023-24.
However, the council has said it would no longer be able to buy the homes after a £33.6m shortfall over the next few years was identified from cuts to social rents and an extension of the Right to Buy.
Chancellor George Osborne announced the policy changes in the Autumn Statement, at the same time as delivering a 24% cut to local authority funding until 2020.
Councillor Ed Turner, deputy leader of Oxford city council, said the government policy changes had created “uncertainty” but the council was in discussions with Grosvenor about how to ensure the delivery of the affordable homes.
The 354 homes could be transferred to a new local housing company or alternative affordable housing provider, he said.
A 1.99% council tax rise is also being considered to help counter the shortfall.
Grosvenor declined to comment.
