Affordable homes not financially viable - report

Homes to be sold at a discounted rate as part of a new housing development have been deemed no longer financially viable.

Ten of 96 new homes at the Ravenswood development on the south-east edge of Ipswich were due to be sold at a discount.

However, a new report by Ipswich Borough Council officers said current market conditions meant it was "not financially viable" for the developer Handford Homes.

The homes are expected to still be built by April 2025 but will be offered for rent instead of sale.

The 10 homes were originally required to be offered as affordable homes and sold at a discounted rate under a section 106 legal agreement when plans were approved by the Labour-run council.

However, the report states the homes would not recover their costs and instead there is a recommendation to apply for new planning permission to allow the homes to be marketed for private rent.

The change would cost £15, 000 and the report proposes using the project's contingency pot to cover the costs.

The programme is funded by Homes England and the government's Brownfield Land Relief Fund, with the council picking up the remaining scheme costs.

More details are expected at a meeting of the council's executive members' meeting on Tuesday.

The report also outlines progress at other housing sites by the council's house-building company Handford Homes, at Hawke Road, Fore Hamlet and Bibb Way, which are to provide a mix of council and private rental properties.

The council said the projects would deliver 302 new homes by March 2026 and provide homes for over 1,000 people.

Alasdair Ross, the council's housing lead, said he was pleased with the company's operation and stressed developing new affordable housing was a priority.

The company is also working with the council to identify new sites for construction after 2025.

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