News, Politics

Fears new Nottingham student block ‘will cost local communities big time’

By Joe Locker, Local Democracy Reporter

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A councillor fears a new student block will “cost local communities big time” after the scheme was approved despite the developer’s inability to provide any cash towards lessening the impact on local services.

A warehouse in Rick Street, behind the Victoria Centre, will be demolished to make way for a 247-bed student apartment building.

The scheme was approved at a Nottingham City Council Planning Committee meeting on Wednesday (April 23), but not without disappointment from councillors over the developer’s inability to make a financial contribution to the local area.

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

This is known as a Section 106 contribution.

The proposed development would have been expected to provide a contribution of £947,847 towards improvements in the local area, however an independent assessor concluded the scheme would not be financially viable if the developer had to pay.

Cllr Sam Lux (Lab), a member of the committee, said the news was disappointing.

“One objection points out that in the locality there is already a wait time of three weeks to get a GP appointment,” she said.

“It just doesn’t feel right there won’t be any compensation for the extra pressure that the development will create.

“We’ve discussed this at length in the past and it feels with the policy we have at the moment our hands are tied and we can’t object on the grounds of this.

“It is frustrating. I think we should be pushing for better policies going forwards.”

Under current legislation, it is considered reasonable for developers to make between 15 to 20 per cent in profit on a scheme.

If a viability assessment deems this margin not achievable, the developer does not have to provide any money under a Section 106 agreement.

It has been a contentious issue in Nottingham and the wider country, particularly after construction costs increased significantly amid global conflicts and economic troubles.

Cllr Kevin Clarke (Ind) was the only councillor to object to the plans during the meeting.

He told the Local Democracy Reporting Service: “Developers just can’t see that 106 deferrals cost local communities big time.”

The plans, from PMI Developments Ltd And Harcourt Land And Development, received a number of objections from nearby residents.

One objecting resident argued the development would further limit the resources within the city, particularly access to a GP, with current waiting times at the Victoria Surgery on Glasshouse Street being around three weeks.

The plans were first submitted in April 2022, but the application faced several delays to enable changes to be made.

Original plans proposed an apartment block up to 16 storeys high, featuring 401 students beds.

Cllr Pavlos Kotsonis (Lab) praised the developer’s willingness to alter the height of the building – and the number of beds – following concerns over the initial plans.