An 18-storey housing development in West London has been granted permission to proceed with no affordable homes whatsoever, marking a significant departure from original agreements. The project, located at Greenock Road in Acton, was initially planned to include 43 affordable units as part of its residential offering.
Developer Cites Financial Pressures
The developer successfully argued that the scheme would not be financially viable unless the affordable housing requirement was completely removed. This represents a stark contrast to Ealing Council's typical policy, which mandates that new developments provide at least 35 per cent affordable housing.
Instead of the originally planned affordable units, the council has negotiated a payment of £1 million from the developer. This sum is intended to contribute toward affordable housing provision elsewhere in the borough, though it represents just £23,000 per lost affordable home.
Council Committee Concerns
Councillor Chris Summers, representing Northolt Mandeville, expressed serious reservations about the arrangement during Wednesday's committee meeting. He questioned the financial logic of accepting £1 million in place of 43 affordable homes, noting that the market value of those units would substantially exceed the compensation amount.
"I just think we've been sold a very bad deal," Councillor Summers stated. "Forty-three units in that block of flats, they're now going to be able to sell for market value. That's got to be an awful lot more than £1 million."
Viability Assessment Explained
In response to these concerns, a council officer clarified that the decision was based on a comprehensive viability assessment of the entire development rather than a direct valuation of the lost affordable housing. The officer explained that the scheme remains financially challenging even without the affordable housing provision.
"It is a deficit scheme, so it's still not making money in plain terms," the officer noted. "The applicant has proposed a commercial offer to perhaps consider future economic conditions and take a risk on their part."
Additional Community Benefits
The £1 million payment supplements an existing Section 106 agreement already secured by Ealing Council. These funds are designated to support various local services and amenities, including healthcare provision, educational facilities, leisure spaces, open areas, and children's play spaces throughout the community.
The 18-storey development will feature a ground floor cafe and dedicated amenity spaces for residents across two separate floors. The planning committee approved the revised plans with only one dissenting vote among the councillors present.
This decision highlights the ongoing tension between housing development viability and affordable housing targets in London's challenging property market, raising important questions about how local authorities balance developer interests with community housing needs.
