Developers behind plans for two new apartment blocks in Manchester city centre must pay more towards affordable housing, a local councillor has said.
Between them, developments in Port Street peaking at 34 storeys tall and the 13-storey tower in Store Street would feature 500 flats – none affordable. This falls short of the council's policy of 20 pc for developments of this size.
The developers behind the plans which are due to be decided today (May 31) have offered to contribute towards affordable housing elsewhere in the city. Select Property Group - which is behind the Port Street plans for 485 flats - has upped its offer for affordable housing off-site from £350,000 to £1m.
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Meanwhile, M1 Piccadilly - the Store Street development which Liverpool footballer Naby Keita has backed - initially offered no contribution towards affordable housing, but has now increased its off-site offer to £125,000. However, Piccadilly ward councillor Sam Wheeler says this is still not enough.
He said: "The city council passed a strong affordable housing policy that was the will of the people of Manchester. Developers know the policy before they buy land in my ward.
"It is total arrogance for people who have never dared stand for election to try and subvert democracy for their own ideological or financial purposes. They must not be allowed to get away with it."
The Labour councillor claims M1 Piccadilly would have to contribute at least £600,000 in order to meet Manchester council policy on affordable housing. However, according to an independent assessment of the proposal, the scheme would not be financially viable with affordable housing included.
Nevertheless, Coun Wheeler maintains that M1 Piccadilly would still return a profit if it paid the full £600,000 towards affordable housing as per the policy. Formally objecting to the application for the 54 apartments, he said: "As Manchester faces a cost of living crisis, it would be difficult to come up with a more obscene proposal than a giant golden tower with no affordable housing. If it had been submitted as satire it would have been considered as too on the nose."
Coun Wheeler has also formally objected to the Port Street plans for 485 apartments off Great Ancoats Street which has attracted 210 objections. He described the developer's initial offer of £350,000 for affordable housing as 'paltry' and said the increased offer of £1m is only 'slightly less than paltry'.
The Labour councillor claims the developer could afford to contribute millions more to meet the affordable housing requirement and still return a profit. In his objection, he said: "We have heard a lot about a new era for Manchester. The proof of that will be whether this passes the committee."
Ancoats and Beswick Lib Dem councillor Alan Good is also critical of the plans. He said: "Developers know how to play the system to get away with no affordable housing, and Labour have been letting them get away with it."
"The system for considering affordability needs to catch up with reality - with massive build-to-rent only new builds, the profits from the rental for the developer also need to be considered. A vibrant city centre community needs a mixture of housing types, not just luxury flats for young professionals."
Select Property Group CEO Adam Price said the company is 'rooted' in the North West and 'committed to making a positive contribution to Manchester'. He said: "Our proposed development at Port Street will provide new homes designed to meet the needs of people wanting to live in Manchester city centre, together with ground-floor spaces for local businesses and a fantastic new green public space within the site.
"Alongside this, we take very seriously the responsibility we have, as developers, to play a role in the delivery of new affordable homes. Our proposal includes a financial contribution towards affordable housing in the city, which has been independently assessed by the council and their advisors in full compliance with national and local planning policy.
"Our proposals for Port Street will breathe new life into this long-standing vacant site and encourage more residents to make this area their home, making a positive, lasting contribution to Manchester city centre."
Faizal Atcha's LW Group is behind the M1 Piccadilly project for the 'giant golden tower' in Store Street which Liverpool star Keita has invested in. The football is a 10 pc shareholder in the scheme, while Atcha owns 83 pc.
He said: "We have worked very closely with Manchester City Council for the past two years as we seek to develop this vacant area of Store Street. We met with a number of councillors including Coun Wheeler and addressed all topics. Detailed information can be found in the planning committee report."
The planning committee will meet at 2pm on May 31 to vote on the plans.
