No housing 'for foreseeable future' at Luton's Power Court without a Homes England grant
No housing can be delivered “for the foreseeable future” on the multi-million pound town centre regeneration of Power Court in Luton, without a grant from Homes England, a meeting heard.
Every avenue including affordable properties has to be explored before the government’s housing and regeneration agency offers such funding, the borough council’s development management committee was told.
Luton Town Football Club plans to transform the 21-acre brownfield Power Court site by building its new stadium there and revitalising the surrounding area.
The committee agreed to a formal request from 2020 Developments (Luton) to vary the (2022) legal agreement for its planning consent and remove the requirement for affordable housing.
Chief operating officer for the Hatters’ property arm Michael Moran explained: “We can only access Homes England’s grant as the last resort to make a scheme viable.
“Homes England requires a developer to have exhausted all standard routes around viability. The assessments make clear the affordable housing isn’t possible in the current environment.
“Before our involvement ten years ago, the site was labelled ‘undevelopable’ by former owner British Land. We believe in the location and its potential to deliver for Luton, but the economics don’t add up.
“The stadium is self-financing. It doesn’t require the residential build. We’re speaking to Homes England and to the council to consider alternative ways of getting the affordable element on site.
“Without this grant funding, no housing at all will be delivered at Power Court in the foreseeable future,” he warned. “This would have knock-on implications around revisiting the site, the council’s housing delivery plan and the viability of other local developments.”
Principal planning officer David Hall confirmed that the applicant’s financial viability assessment “has been robustly tested by an independent assessor”.
Liberal Democrat Barnfield councillor David Franks said: “I can remember 1,500 homes being demolished in the town centre, which pretty much became depopulated and suffered immensely.
“One advantage of this is that it triggers a significant repopulation of the town centre, which is a huge benefit.”
Labour Dallow councillor Alia Khan described the viability situation as “unfortunate”, saying: “This is still an opportunity for us to see some residential development in Luton.
“While it’s disappointing we’re having to make this decision, I’m hopeful and reassured there are conversations with Homes England to support this delivery. I’m confident 2020 Developments will do good on their word.”
Labour Central councillor Mohammed Yaqub Hanif suggested: “It’s about time that plot of land, which is like a blot on the town centre, is repopulated.
“The whole vibrancy of that part has long gone. I was sceptical about the affordable housing being removed, but I’ve been reassured and encouraged by what’s been said this evening.
“Having people living there will re-energise the town centre, as they’ll be spending their money and contributing to the locality. It complements the work of the local authority’s nighttime economy task force.”
Labour councillor Dave Taylor, who chairs the committee, added: “I would hate to see a brand new football stadium and a mass of waste land around it.”