Profits 'squeeze' means less cash from developers for communities

RISING BUILDING COSTS HIT SECTION 106 PAYMENTS

- By EDDIE BISKNELL Local democracy reporter

Riverleen House, in Electric Avenue, Nottingham, is being converted into 118 studio apartments and flats

THE developer behind an apartment scheme in Nottingham says firms are struggling to provide financial contributions to infrastructure improvements due to a significantly worsening economic situation.

Planning permission was given for the conversion of Riverleen House, in Electric Avenue, into 118 studios and flats for professionals in August last year.

Developer Arran Bailey, of ALB Group, is now looking to convert the loft space of the former Experian office block into a further 42 one-bed apartments.

However the plans are being brought before a Nottingham City Council planning committee on Wednesday, January 21, because of proposals to waive more than half a million pounds in developer contributions.

Councils typically grant planning permission to developers on the proviso they contribute financially to affordable housing and local education, employment and infrastructure opportunities, in a bid to reduce the impact of a scheme.