Plans approved to extend a former family centre into a four-storey block of flats – none “affordable”

The proposed plans for the former children's home in Albany Street, Ilkeston. Image from Guy Taylor Associates.

By Eddie Bisknell – Local Democracy Reporting Service

Plans to convert and extend a former Derbyshire family centre into a four-storey block of flats have been approved – but none will be “affordable”.

At an Erewash Borough Council meeting this month, councillors begrudgingly approved plans to renovate, convert and extend the former Albany House family centre in Albany Street, Ilkeston, into 28 flats.

The building, which has already been extended and converted into a four-storey modern property, had previously been a family centre but was closed in 2019 by Derbyshire County Council, having served the community since 1968.

In early 2024 councillors had approved the plans, subject to the developer, G Redfern Properties, signing a Section 106 document pledging £39,000 for sustainable transport, money for affordable housing and £8,400 for open space improvements- but this was never signed.

The developer has since approached the council saying the scheme could not financially support these contributions, claiming this would make it unviable.
Officials agreed with this assessment and recommended that councillors still approve the plans.

They said the value of land and the proposed homes in Ilkeston were both low, which made it difficult to have a financially viable scheme in the town.

Developers had previously made these same statements about Ilkeston’s land value to a Government planning inspector.

Officials speaking for the council had said affordable homes could be planned into schemes which were more financially viable, elsewhere in the borough.

This, they said, could involve financial sums instead of homes, so the council could in turn build or buy affordable homes in the right areas – such as Ilkeston.

The Albany House scheme is nearly fully complete, with adverts for renting the flats already listed, which say that residents can move in from February, with rent – including electricity, gas and water – of £1,250 a month.

Cllr Frank Phillips told the meeting: “I wish I had a pound for every time a developer comes back to this committee looking to drop Section 106 commitments.”

He claimed the developers were effectively seeking “charitable relief”, but said: “For a developer, they aren’t choosing between heating and eating, they are choosing between Jaguar or a Ferrari as an end-of-year bonus.”

“It is always affordable housing that gets thrown out of the window first because affordable housing eats into profits.

“We need to stop being soft on developers and insist that Section 106 agreements are upheld.

“Lots of other builders could complete the job and still make a handsome profit.”

Steve Birkinshaw, the council’s head of planning, said the sale of flats in Ilkeston was “low” and had a “suppressed value”, saying: “This is not a high value development. “

He said the developer had waited for an indication that the scheme would be approved before submitting a viability report.

Mr Birkinshaw said: “I am disappointed, it is a very predictable situation that a scheme for flats in north Ilkeston cannot afford affordable housing. We have the same issue in Long Eaton.

“I appreciate the need to hold developers’ feet to the fire, and we have done that, but the viability reports show the scheme cannot meet the requirements.”

Cllr Harry Atkinson, Erewash Mayor, said: “We have gone from three measures of Section 106 funding to none, not even one.

“We have had a huge outburst of HMOs (houses in multiple occupancy) because we don’t have enough flats.

“My concern is that we have a developer who just wants to wash their hands of the S106 agreements.”

He said scrapping the £40,000 for sustainable transport, such as buses, was “not acceptable”.

Cllr Ann Mills claimed that while none of the homes would be classified as “affordable housing”, they would be affordable due to their location in Ilkeston.

Cllr Joel Bryan said: “There is a pattern in developers in the Ilkeston area not being able to afford affordable housing but the alternative is to accept that we will never build in Ilkeston again.

“These are much-needed flats and we need flats, not HMOs. It is obviously disappointing but we would be cutting off our noses to spite our face if we do not approve this.”

Councillors approved the plans with 10 in favour and three voting against.