Fears for Harrogate district’s first-time buyers despite 50% discount scheme

There are fears that many first-time buyers will still struggle to afford the Harrogate district’s high property prices despite a new national scheme offering up to 50% discounts.

First Homes aims to support the sale of new homes to people in the district, which is one of the most unaffordable places to live in England, with average house prices around 11 times average incomes.

Discounts of at least 30% can be knocked off market prices under the scheme, but councils can increase this to either 40% or 50% if they can “demonstrate a need”.

The scheme has been hailed by government as a move to help people get on the property ladder, many of whom will be key workers such as NHS, care home and supermarket staff.

But with the average property price paid in Harrogate last year rising to £395,526, there are fears that the current housing boom and years of rising prices will mean home ownership will still be out of reach for many – even with the top discounts.

Conservative-controlled Harrogate Borough Council has backed the scheme but described it as “problematic” and said it is “highly unlikely” that first-timer buyers will be able to afford new builds in the district.

There are further concerns that the scheme will slow the delivery of much-needed rental homes, which around 1,800 Harrogate district households have registered for.

This is because First Homes requires housebuilders to nominate a proportion of their properties for sale discounts – and this could mean renters miss out.

People needing rented homes ‘will lose out’

Councillor Pat Marsh, leader of the opposition Liberal Democrat group on the council, said it is these households which can only afford to rent that are in the greatest need:

“Our residents needing affordable rented homes will lose out and Harrogate will suffer from not having the mix of residents that will sustain our economy and fill our important key worker roles.

“We question whether this is the most effective way of meeting overall needs if it displaces other tenures which are needed.”

The scheme is for first-time buyers only and does restrict some households with a combined annual income of more than £80,000 from applying.

There are also price caps which mean that after the discount has been applied, the buyer cannot be required to pay more than £250,000.

Those who can afford to buy a First Home without a mortgage are not eligible, and there are further measures aimed at preventing people buying the homes as an investment.

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The scheme launched last year and has recently been backed by Harrogate Borough Council, which said it would publish more information online and use it as a tool to decide planning applications.

Speaking when the scheme launched, former Housing Secretary Robert Jenrick said:

“First Homes will offer a realistic and affordable route into home ownership for even more people who want to own their own home.

“These homes will be locked in for perpetuity to first-time buyers and key workers from their local area – making them an asset to both their owners and the wider local community.”

Harrogate council should have acted quicker on Dunlopillo housing plans, review finds

A review has found Harrogate Borough Council should have acted quicker on controversial housing plans for the derelict Dunlopillo building in Pannal.

Residents, councillors and Harrogate and Knaresborough Conservative MP Andrew Jones all criticised the council when it approved plans for 48 apartments at the site last September.

The decision was made at officer level and without a vote from councillors, which led to the council launching an internal review into how it handled the plans submitted under rules called permitted development rights.

A report has now concluded a “longer period of time than ideal” was spent on parts of the process.

It also said residents should have been consulted with sooner and that this could have allowed time for a vote from councillors.

Despite this, the council said the plans were still “appropriately considered”.

A council spokesperson said:

“The lessons learnt review regarding the former Dunlopillo site in Pannal found that the case was appropriately considered by officers and determined in-line with the appropriate legislation.

“It was acknowledged that some internal process areas could be strengthened, including prioritisation of such applications in the future and a greater overview by senior officers.”

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The report explained that extra time was spent on the application because it was the first the council had received under permitted development rights, which fast-track the conversion of empty buildings into homes.

Since the plans were passed new proposals have since been submitted for the Station Road site with a reduced number of apartments to replace the derelict office building which has been described as a “monstrosity”.

Echo Green Developments now wants to build 38 apartments at the site, which pillows and bedding manufacturer Dunlopillo moved out of in 2008.

The proposed building is still two-storeys higher than the existing offices – something which has been a key concern for residents who are fearful the development will have a major visual impact on the area.

‘Improvements could be made’

Mr Jones had urged residents to make their voices heard on the latest plans and has now welcomed the conclusion of the review.

He said: 

“I was pleased to see that the council had done an internal review on the matter and concluded that, although all the correct factors were taken into account in reaching a decision, there were improvements in the process that could be made.

“I know planners have a difficult job with ever-changing laws and guidance. I know too that they rarely have to take decisions on issues which are uncontroversial.

“That is why I am really encouraged that they have taken the time to look back, evaluate and implement changes in regard of this brand-new class of permitted development.”

Mr Jones added: 

“After the initial submission which prompted my concerns over the decision-making process, the applicants submitted a new proposal for the Dunlopillo site.

“This superseded the earlier decision and time was available to get the application before a planning committee.

“I think this shows that not only did planners critically evaluate what had been done previously, but they implemented the positive changes identified in the report.

“I am grateful that they took this approach irrespective of the outcome of the process.”

A decision on the latest plans is expected this month.

Harrogate council housing company Bracewell Homes won’t pay any dividends this year

Harrogate Borough Council has insisted its housing company is performing well despite it not paying any dividends this year.

Bracewell Homes launched two years ago with the aims of turning the council a profit and intervening in Harrogate’s pricey property market to deliver much-needed rental and shared ownership homes at affordable prices.

Its developments are Horsa Way, Dishforth and The Willows on Whinney Lane in Harrogate.

It was set up with the backing of a £10 million loan from taxpayers and the council had budgeted to receive £267,000 in dividends this financial year.

However, the council has now said it won’t receive any of this money in a revelation which sparked questions over whether Bracewell Homes is underperforming.

Speaking at a meeting on Monday, Cllr Pat Marsh, leader of the opposition Liberal Democrat group, questioned if the dividend shortfall was being addressed as she said the company should be a benefit to the council and not a “drain” on its finances.

‘Extremely profitable’

But Paul Foster, head of finance at the council, responded to say the company was still “extremely profitable” and that it had continued to sell properties, although at a smaller percentage of shares than expected.

He said: 

“The company isn’t able to pay a dividend this year and the reason for that is a proportion of the shared home properties it has sold have been at shares of 25% and 30%.

“It would need to have sold shares of up to 50% for them to have enough cash to provide a dividend.

“In December, four or five properties were sold at a lower share than the company was forecasting and as a result there is less cash in the company.

“The company is not underperforming in particular. It is just not selling the larger shares which make it more cash rich.”

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According to documents filed with Companies House, Bracewell Homes had £459,565 in the bank as of March 2021.

Mr Foster also told Monday’s meeting that the council does not only benefit from the company through dividends, but also through cash coming from other areas.

He said: 

“There are three elements that the council benefits from Bracewell Homes – there is a recharge of staff salaries, interest charges on the loan that the council made to the company, and a payment of a dividend if the company is able to.

“The first two continue and we are still making money out of the company in that regard.”

40 properties by 2024

Since it was set up Bracewell Homes has so far acquired 26 homes and sold 22, which means it is on target to meet its initial aim of delivering 40 properties by 2024.

But with house prices continuing to soar and around 1,700 households on the council’s housing waiting list, there have been calls for the company to set much higher ambitions.

Cllr Marsh previously told the Local Democracy Reporting Service that the company should be aiming to deliver “hundreds” of homes to ensure low-income earners can afford to live in Harrogate where average house prices paid rose to £395,526 in 2021.

Cllr Marsh previously said: 

“Forty homes in three years will barely make a dent in the need for the 1,700 on the waiting list, some living in very difficult circumstances.

“We need Bracewell homes to set targets to achieve hundreds of houses per year otherwise this crisis will never come to an end.”

Plan approved to demolish Harrogate social club for flats

Plans have been approved to demolish a Harrogate sports and social club to make way for 14 flats and a community facility.

The proposal by Mitre Residential LLP would see St George’s Sport and Social Club, on St George’s Road, flattened.

According to planning documents, it would be replaced by a three-storey building comprising of 14 two-bedroom flats and a replacement community facility, which would be used as a dance hall.

Harrogate Borough Council gave the go-ahead for the plan last week.

The site was previously used as a sport and social club, but more recently has been used by a dance club.

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The developer said in documents submitted to the council that the proposal would help to relieve pressure on greenfield sites for housing.

It said:

“The development will provide 14 two-bedroom flats and the new proposals will be in keeping with the style and type of housing surrounding the site. 

“The new hall will replace facilities that are no longer required but still provide a viable club for members who have shown an interest in maintaining the facilities.”

Harrogate Civic Society said in response to the application that it was pleased to see the community facility replaced as part of the plan.

It said:

“We are pleased to see a replacement facility, albeit much reduced in size. If this can provide the needs of all those that use the current building, then this is satisfactory.”

Plan to build 26 homes on former Masham livestock mart

Developers have submitted plans to build 26 homes on a former Masham livestock mart.

The site off Leyburn Road in the town operated as a livestock mart for farmers until it closed in 2006.

Now, Ripon-based Briahaze Village Homes Ltd has lodged plans to Harrogate Borough Council to build houses on the site.

In documents submitted to the council, the proposal would see 26 homes built, ranging from one-bedroom townhouses to five-bedroom detached properties.

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The developer said that the site had stood empty for some time and the plan would help to redevelop the land.

In its planning statement, the developer said:

“The site has been vacant for a lengthy period as the need for local markets has evolved and there is no opportunity for the livestock mart to reopen. 

“The property has been marketed but not had any serious interest. Instead, the applicant seeks approval for the redevelopment for residential development and make best use of this previously developed land.”

Harrogate Borough Council will make a decision on the proposal at a later date.

Hampsthwaite doctors’ surgery conversion finally approved

A plan to convert Hampsthwaite’s former doctors’ surgery into a house has been approved at the second attempt.

Dr Bannatyne and Partners, which was based at Winksey Cottage, High Street, in the village, closed in March last year.

The surgery was part of Church Avenue Medical Group and shut down after practitioners felt the cottage was no longer a viable place for a medical practice.

Mozaffar Nami, a developer, lodged plans to convert the building into a house. 

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Harrogate Borough Council initially rejected the proposal in November on the grounds that the applicant had not demonstrated that the site had been empty for more than three months.

Now the developer has had plans approved after resubmitting proposals for the former surgery.

Mr Mari said in documents submitted to the council that the building had been previously used as a house before becoming a surgery and could be “readily converted back” into a home.

 

Taylor Wimpey submits plans for 390 homes in Ripon

Housebuilder Taylor Wimpey has submitted plans for 390 homes in Ripon.

Government housing agency Homes England commissioned the company to build the scheme off West Lane as part of an £89.5 million contract.

The proposal, which already has outline permission, would see a mixture of two, three and four-bedroom homes built on the site.

Most of the houses will be for market sale, but 156 properties will be designated as affordable housing.

Sarah Armstrong, land director for Taylor Wimpey North Yorkshire, said: 

“We’re delighted to have been selected as preferred developer to deliver this site in partnership with Homes England.

“We’ve taken a landscape-led design approach to develop a residential masterplan that will enhance the character and identity of the site.

“The development will include locally-equipped play facilities and attractive biodiverse landscape features, and we are providing significant areas of open space to allow new residents and visitors to enjoy a high-quality living environment with an attractive outlook.”

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Should planning permission be approved, Taylor Wimpey expects work to start in spring this year.

Homes England intervened to buy the site after Barrett Homes pulled out of the scheme in July 2020.

Marie Kiddell, head of planning and enabling north at Homes England said:

‘We intervened to buy West Lane in Ripon to unlock this stalled housing site. 

“We’ve since appointed Taylor Wimpey, as our preferred developer, to take on the mantle of providing quality new homes, including 40% affordable provision – that’s 156 affordable homes in an area where they are most needed.

“Submitting the reserved matters application marks another step forward in bringing these vital new homes one step closer to reality.”

Harrogate Borough Council will make a decision on the plan at a later date.

Talks today about 4,000 new homes in west Harrogate

Harrogate Borough Council officers will meet residents groups and parish councils today to discuss the long awaited West of Harrogate Parameters Plan.

The plan describes the infrastructure requirements associated with up to 4,000 new homes due to be built in the western arc of Harrogate.

A draft version of the delayed plan has now been published and circulated by the council to groups including Harlow & Pannal Ash Residents Association, North Rigton Parish Council, Pannal and Burn Bridge Parish Council and Zero Carbon Harrogate. The Stray Ferret has also been sent the document.

At over 100 pages long, the document paints a broad brush vision of how the area will be transformed by new housing.

It includes proposals for two new primary schools and a possible new GP surgery — which have been previously announced.

Howard West, chair of Pannal and Burn Bridge Parish Council, told the Stray Ferret the plan lacked detail on addressing traffic and congestion.

He added:

“The parameters plan draft is in nice developer-speak but there’s no answer to the problems arising from building 4,000 homes around Harrogate’s western arc.”

Hapara and Zero Carbon Harrogate both said they would comment on the plan after today’s meeting.

Hapara previously said it was unhappy about the level of consultation offered to residents by the council during the process.

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Beset by delays

The council initially said the parameters plan would be published in October 2020. But it was delayed until March 2021, then September 2021.

The draft plan is still to be ratified by the council.

A council spokesperson said:

“The development of west Harrogate provides an exciting opportunity to deliver quality place-making, a wide-range of private and affordable homes to meet the current housing demand, while also ensuring we have the necessary infrastructure to support these future communities.

“Once approved, the West of Harrogate Parameters Plan will create clear goals and objectives by identifying what infrastructure is required. For example, first-class community facilities, school provision, green infrastructure and sustainable travel opportunities.

“A number of suggestions have already helped shaped the WHPP and I’d like to thank those local residents groups and parish councils for their valuable feedback.”

£4 million of Harrogate district housing developer funds left unspent

Harrogate Borough Council has held onto almost £4 million of unspent money given to it from housing developers for social and community projects.

The Section 106 cash is agreed during planning talks to offset the impact of new housing and is intended to be used for improvements such as village hall refurbishments and new sports facilities.

More than £613,000 was spent on projects during 2020/21 – and the council has been praised by some communities.

But with around £3,730,000 unspent at the end of that period, there are concerns that many residents are not feeling the benefits at a time when the construction of hundreds of new homes is piling pressure on the need for community facilities.

Residents left with no community improvements

John Hansard, a member of Kingsley Ward Action Group, said the area faced the construction of around 700 new homes but residents have had “nothing at all” in terms of community improvements.

He said:

“Some of this money needs to come our way.

“Harrogate can’t cope with much more new housing and to think they want to build an extra 700 homes in our area is absolutely crazy.”

Tim Ellis, who also lives in the Kingsley ward, added: 

“There is no community hall, no church halls and not even a pub any more, therefore nowhere local groups can have meetings.

“With all the new housing destroying the last of the fields, and new houses having tiny gardens, we will need a public park.

“The triangle of meadow and trees to the east of Kingsley Farmhouse bordering Kingsley Road would be ideal… but greedy developers are threatening to put houses even on this.”

Most of the money spent by Harrogate Borough Council during 2020/21 was on the purchase of affordable housing.

Cllr Tim Myatt, cabinet member for planning at the council, described the funding as a tool to “support future communities across the Harrogate district” and said other projects included new play areas and open space.

He also said the authority helped North Yorkshire County Council secure around £1.2 million in the last year for improvements to roads, sustainable travel and schools.

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But when questioned by the Local Democracy Reporting Service, the county council did not say how much unspent money it has held onto.

A county council spokesperson said Section 106 money has a “significant lifespan” and that the funds will be used for their intended purpose “at the appropriate time”.

Call for review of section 106 contributions

Harrogate Borough Council said it was “not unusual” for the authority to have large sums of unspent money and there were several reasons why this is the case.

It said the money is sometimes paid in instalments and cannot be spent until it has all been received. It also said parish councils often ask for the money to be saved up for larger projects.

Despite this, Cllr Pat Marsh, leader of the opposition Liberal Democrat party, said the almost £4 million unspent by Harrogate Borough Council “does seem a lot” and has called for more regular reviews of how the money is spent.

The council also collects cash through Community Infrastructure Levy contributions, which are another type of charge on new housing.

These work on a pounds-per-square-metre basis and because of recent changes to Harrogate Borough Council’s charging schedules no contributions were collected during the last financial year.

It is now intended that a review will be carried out to develop a list of spending priorities and projects.

Cllr Myatt added: 

“Payment of CIL is due upon commencement of development, therefore there will be a time lag of up to two years before the first CIL contributions are received.

“In the future, the CIL will provide us with a pot of money so that we can work with local communities and partners to provide the right infrastructure in the right places to support development and the continued growth of the Harrogate district.”

Plan to convert former Ripon City Club into house

A former club in Ripon could be converted into a house, under plans submitted to Harrogate Borough Council.

The club was initially built as the Jepson’s Hospital, a ‘Blue Coat’ school for poor boys in the city, before it closed in 1927.

It was then taken over by Ripon City Club, which occupied the building on Water Skellgate before it closed due to a dwindling membership in December 2019.

According to documents submitted to the council, the number of members at the club 20 years ago stood at 300. However, the figure dropped to just 11 by the start of 2019.

As a result, the viability of the club was cited as a reason for its closure.

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The proposal by Joplings Property Consultants, lodged on behalf of applicant Mr Jeet Sahi, would see the building converted into a house.

In 1998, the rear half of the club was sold to a developer with planning permission to build seven apartments.

The developer said in its documents:

“The proposed change of use to a single residential dwelling is required by the applicant for him and his family to occupy. 

“The previous use of the building is redundant, the proposed change of use to residential is in line with planning policies to meet the demand for new residential housing.”

The club will become the latest in the Harrogate district to be converted into housing following the demise of its membership.

Last month, plans were submitted to convert the former National Reserve Club on East Parade in Harrogate into apartments.