Unfinished homes in limbo, Somerset
The future of an unfinished housing estate is uncertain after the developer has called in administrators
The future of a new housing estate in Minehead is in the balance after the developer calls in the administrators.
Stratton Land Ltd. – which is based in London, with an office in Tiverton – has been constructing the Exmoor Gate housing development, comprising 69 homes on the southern side of the A39 Porlock Road in Minehead, on the fridges of the Exmoor National Park.
The developer had experienced viability issues with the site, securing permission from Somerset Council in February to reduce its contribution towards a new community centre in the town, citing the cost of removing topsoil from the development site and storing it down the road in Watchet.
But the developer has now admitted defeat and called in the administrators – meaning the remaining homes within the site will be significantly delayed or possibly not built at all.
According to Companies House, the developer – which previously delivered the Highbridge Wharf estate, comprising 95 homes in Highbridge – called in the administrators on May 9.
Leeds-based PKF Littlejohn Advisory Ltd. was subsequently appointed, but did not respond to requests from the Local Democracy Reporting Service regarding the future of the Minehead site.
If the site is sold to a new developer, they will be liable not only for completing the homes but also honouring any financial obligations agreed within the Section 106 agreement – including the reduced contribution of £175,614 towards a new community centre which was agreed in mid-February.
A spokesman for Somerset Council said: “We are working with all concerned parties to ensure the development moves forward.
“Section 106 agreement contributions are tied to the land, so will be honoured as part of any new arrangements.”
Tiverton and Minehead MP Rachel Gilmour said that she was saddened by this turn of events and called on the government to make it easier and more financially viable to provide affordable homes in rural areas.
She said: “Stratton Land Ltd. entering administration is a disappointing outcome for many, especially those hoping for affordable housing in their area, which may have been provided by Stratton.
“Providing truly affordable housing should be a clear priority in this current housing climate, and anyone exiting the market who would otherwise be providing that is a shame.
“The government needs to ensure that genuine affordable homes are available in local communities, and it should work across the sector to make that a reality.”