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Javid approves supermarket scheme with 4% affordable housing
Housing secretary Sajid Javid has overruled a council to grant supermarket giant Sainsbury’s planning permission to build 683 homes, just 4% of which will be affordable.
The retailer had appealed against Redbridge Council’s rejection of the scheme, which includes the redevelopment of a superstore in east London, together with a car park and additional commercial space.
Mr Javid agreed with a planning inspector’s recommendation that permission be granted following a public inquiry.
Using a viability assessment, Sainsbury’s claimed it could not provide more than 27 units of affordable housing on the scheme due to Community Infrastructure Levy (CIL) contributions built into the application.
It will make a profit of 20% on the residential units created through the scheme.
London mayor Sadiq Khan said the scheme was “a huge missed opportunity” to provide affordable housing.
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A letter on behalf of Mr Javid said that “at first sight, the affordable housing offer of 27 units appears low”.
However, it added that Sainsbury’s had given “very detailed financial justification” for its position and that its CIL contributions made 27 units “the maximum reasonable amount of affordable housing” that it could provide.
Sainsbury’s will make a £7.53m CIL payment to the council, as well as £3.77m to the Greater London Authority and a £63,000 contribution towards Crossrail.
Mr Javid concluded that “the provision of housing, including affordable” and “the economic and social benefits” meant the development should go ahead.
His approval of the scheme comes just a week after the government unveiled plans to limit developer use of viability assessments to dodge affordable housing commitments.
The 683 homes, to be arranged in nine blocks including two terraces of mews and houses, will account for 60% of the whole borough’s annual housing target.
Rebridge Council has been approached for comment.
A spokesperson for the mayor said: “The government’s decision shows just how out of touch they are with the needs of Londoners. Both the borough and the mayor recognised that the amount of affordable housing on offer was simply unacceptable.
“Decisions like this are not in the best interests of the capital – it is a huge missed opportunity when Londoners are crying out for more genuinely affordable homes.”
