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House builder pulls out of 565-home council site development

House builder Crest Nicholson has pulled out of a 565-home scheme on council land in Hove, claiming it cannot viably deliver any affordable housing at the site.

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King Alfred Leisure Centre in Hove (picture: Google Street View)
King Alfred Leisure Centre in Hove (picture: Google Street View)
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House builder pulls out of major council site development #ukhousing

Future of 565-home scheme in Hove left in doubt as developer withdraws #ukhousing

The developer’s regeneration arm has been working with Brighton & Hove City Council since it won the bid to redevelop the 1.8 hectare King Alfred site in 2016.

A total of £23m in public money has been committed to the project, including £15m from the government’s Housing Infrastructure Fund and £8m of council investment.

But Crest Nicholson said it has “reluctantly come to the conclusion that the ambition of the scheme in these uncertain times is too great”.

Its plans for the seafront site included four new blocks of flats up to 18 storeys, plus the replacement of the 1930s King Alfred Leisure Centre with a £50m new sports facility.


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Chris Tinker, interim chief executive at Crest Nicholson, said: “It is now increasingly apparent that the growing cost of delivering the scheme, including the council’s new £50m leisure centre, at a time when uncertainty has been increasing and values falling, means that the project is no longer able to support the provision of any affordable housing and remain viable.

“This position, despite significant funding pledges from both the council and Homes England, is unlikely to change and the board has therefore reluctantly decided that it is not willing to promote and deliver a development of this scale and nature.

“All stakeholders have been made aware and we will continue to work with all partners to ensure a smooth transition.”

Brighton & Hove Council’s city plan requires developments of more than 15 homes to be 40% affordable housing, but the King Alfred site had an agreed level of 20%.

The authority said it has already begun exploring alternative delivery options, with councillors to be updated on next steps in the autumn.

Nancy Platt, leader of Brighton & Hove Council, said: “Of course we are hugely disappointed that Crest Nicholson has confirmed it won’t be progressing the redevelopment of the King Alfred site.

“We’ve worked closely with their team to find a financially viable scheme to deliver a new public sports and leisure facility and provide affordable housing.

“We appreciate the difficulties and complexities of the project, and appreciate too the efforts made by Crest Nicholson but the council makes no apologies for pressing the developer to deliver the scheme it selected in 2016.”

“Finding a viable alternative will be our upmost priority and this will include consulting with the local community who have been so patiently awaiting this development.”

Planning permission for 751 new homes at the King Alfred site, including 37% affordable, was granted to Karis Developments in July 2007 but the project collapsed a year later after financial backers ING Real Estate withdrew.

The decision comes as Crest Nicholson attempts to turn around its fortunes after recent profit drops. In June it reported that its profits were £64.4m in the six months up to 30 April, 11% down on last year’s figure, with the builder blaming the drop on a slowdown in the London sales market.

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