A developer has asked planners to scrap the affordable housing element of a site in Teignmouth because the scheme is financially unviable.

Harrington Homes, which is behind the Teignbrook development on Higher Exeter Road, has asked Teignbridge District Council to waive its Section 106 obligations. These include a requirement for 25% of the housing on the site to be allocated as ‘affordable’ and an obligation to financially contribute to the local community through education, sport, transport and biodiversity funds.

In a letter to Teignbridge planners, Stantec UK Ltd, an engineering consultant acting on behalf of Harrington Homes, explained that costs had continued to rise ‘due to the unforeseen realities of delivery on site and associated technical challenges’.

It added that an independent financial viability assessment had concluded that the scheme in its current state would be ‘terminally unviable and undeliverable’ and would be stalled in December 2025 unless the Section 106 obligations were removed.

Outline permission for the 255 home site was originally granted in 2014 with final sign off in 2022. However, to date, the developer has only started work on 20 houses. Construction has significantly slowed over recent months, prompting Teignbridge enforcement officers to raise concerns over the development’s progress with Harrington Homes.

Stantec said ‘the currently terminal viability position means that the Applicant (Harrington Homes) will have no choice but to halt work on site following completion of the 20 homes that are currently under construction’ because any further development would make the viability position progressively worse.

The work to complete the 20 dwellings is due to complete by Christmas 2025.

If work were to completely cease, it would not only impact Harrington Homes, but local businesses that are subcontracting on the site.

Local councillors and campaigners have expressed dismay at the request by Harrington Homes.

‘Teignmouth is losing out on new, affordable housing that could have been delivered through the Section 106 obligations,’ said councillor David Cox. ‘If we have to lose our beautiful countryside, at least house local families. In essence, financial viability assessments provide a loophole for developers to escape their affordable housing obligations.’

Teignbridge District Council’s housing enabling officer also slammed the request in a written response on the planning portal stating that any loss of affordable housing will have a detrimental effect on meeting housing need in Teignmouth.

Harrington Homes managing director Alex Hugo assured Teignbridge that if the Section 106 obligations were revoked, the firm would remain committed to completing the scheme despite the limited financial return. ‘As a business, we are supported by investors who are financially committed to the development,’ he stated in a letter.

Stantec also pledged that if Teignbridge agreed to disregard the Section 106 obligations before the end of the year, then ‘further development on site could continue and the site will become deliverable’.

Teignbridge District Council said it expects to make a decision on whether to remove all Section 106 obligations by December 2.

Harrington Homes is actively pushing sales of houses on the Teignbrook development. It is promoting its show home launch this Saturday (November 22) and is offering incentives for buyers that complete before Christmas.