Council secures injunction after developer fails to build-out affordable homes
Bolsover District Council has secured an interim injunction against a developer prohibiting them from building, selling or leasing any more properties on a development after the council claimed the developer had not built enough affordable homes.
The council gave the green light to developer Arba Ground Trading Company for a 126-home development in March 2011 with a section 106 condition requiring 10% of the homes to be affordable.
The council said that 126 houses have since been erected, leaving nine left to be built, which means the developers could not meet the affordable housing target.
At the High Court in Birmingham, the council claimed the developer appeared to be trying to build a market housing-only development on the site, which is not what planning permission was granted for and was a breach of the s106.
His Honour Judge (HHJ) Tindal said: "A party who made promises under a s106 and then breaks those promises can expect themselves to be made subject to an injunction."
He added: "The developer had raised over £31m, and there is a strong public interest in this council seeking an injunction and that as 126 properties are occupied, the s106 cannot be complied with."
The case has been adjourned as the developer has appealed a February 2024 decision refusing to vary the s106 agreement to reduce its obligations.
Once the appeal process is complete, the matter will be returned to the High Court.
In the meantime, HHJ Tindal issued an interim injunction that prohibits the developer from building or selling/leasing any more properties. Costs have been reserved.
HHJ Tindal also said: "I cannot understand what defence they can have. It should also be made clear that they owe the debt. What's currently owed as we stand here today is the full amount of contributions owed under the original agreements."
Bolsover's Cabinet Member for Governance, Cllr Duncan McGregor said, "We faced the real risk that the development would be completed, sold and occupied without the monies being paid and other obligations being met.
"The developer could then wind up the company, leaving all contributions outstanding with little means for the council to enforce the terms of the obligations.
"Nothing which has occurred over the last three years gives us any confidence that the obligations would be promptly and fully complied with, that's why we sought court action.
"But let this be a warning to developers. We issue planning permission on the proviso that its conditions are met. If they are not, then we will take legal action against those responsible."
Arba Ground Trading Company has been approached for comment.
Adam Carey
