Stalled plans to build almost 500 new apartments on the edge of Preston city centre would stand a better chance of being delivered if an affordable housing demand made by the city council was dropped.

That is the claim from the applicant behind a blueprint for the redevelopment of the former Dryden Mill site on Manchester Road.

Stoneygate Living was granted permission to create two residential blocks – one 16 storeys high – on the disused plot in March last year – It was claimed the proposal would kick-start the regeneration of the south eastern fringe of the city centre.

Read more: University of Central Lancashire facing backlash over axing of ‘lifeline’ language courses

At the time, the firm successfully argued that its ‘Stoneygate Central’ scheme would not be financially viable if it was forced to abide by a Preston City Council planning policy which means 30 percent of all properties on urban developments should be classed as ‘affordable’ – and so offered at discounted rates for either rent or sale.

The authority’s planning committee waived that requirement – but only on the condition that the profitability of the project was reassessed at a later date.   If it was found to have made more money than initially predicted, the applicant would be forced to stump up a cash contribution towards the construction of affordable housing elsewhere in the city.

However, it emerged in September that a deal for developer Belgravia to deliver the 469 apartments planned for the site had collapsed after the firm concluded it was financially unviable even with the concession made by the city council.

The scheme has since been put back on the market, but Stoneygate Living has now told town hall planners that the so-called ‘review mechanism’ assessing future profit levels is itself a “financial obstacle” to the apartment vision being realised – because it creates “uncertainty for investors”.

In a bid to have that fallback removed, the company points to the planning committee’s agreement just last month to the same request made in relation to the redevelopment of the Park Hotel.  Members agreed to drop the review – and so sacrifice any prospect of the development generating affordable housing cash – amid fears that the claimed delay it would cause left the historic building at risk of further decay, or even fire, in the meantime.

In a letter submitted to the city council, Claire Parker – from Cassidy + Ashton, the agent for the application – suggests that if the Park Hotel project requires that kind of stimulus, the Dryden Mill scheme also does.

“The Park Hotel development is arguably located in the most sought-after location within the city centre with unrivalled views of Avenham and Miller Parks and close proximity to the railway station, yet the scheme clearly has viability challenges.

“By comparison, the Manchester Road development is located within a less desirable and more deprived area, but it is a location earmarked for regeneration by the local authority in respect of city living. Removing the requirement for a review mechanism from the Park Hotel development illustrates how unviable the mechanism is in respect of city centre apartment schemes even when sited in the most desirable locations, alongside other difficulties the market is presenting.

“If the local authority wishes to see a commitment to the regeneration of the Stoneygate area then conditions need to be attractive to developers and their investors to do so. Developers will continue to be more attracted to proceeding with schemes without a mechanism requirement than those with, particularly on sites where remediation is required given these costs are only likely to increase over time.

“It is considered that the scheme can still act as a catalyst for development within the Stoneygate area, subject to market conditions, and the removal of the viability review mechanism will make the development more viable for developers and provide a degree of certainty when investment decisions are made,” Ms. Parker adds.

Subscribe: Keep in touch directly with the latest headlines from Blog Preston, join our WhatsApp channel and subscribe for our twice-a-week email newsletter. Both free and direct to your phone and inbox.

Read more: See the latest Preston news and headlines