Hundreds of homes have been built in Aberdeen city centre thanks to a controversial policy first blasted for “giving an extra wad of cash to developers”.
In September 2018, the local authority removed the need for affordable housing to be included in schemes based around the heart of the city.
The two-year waiver was introduced to bring more people into the centre to help keep the high street alive.
But SNP councillors, at the time in opposition but now leading the council, said it was “a policy for the few, not the many”.
John Cooke said: “It’s just giving an extra wad of cash to developers.”
How many homes has policy helped create?
Four years on, a report has revealed that 736 new homes have been approved in the city centre since the waiver was brought in.
More than 360 have been completed.
Stressing the benefits of the scheme, officers explained that between January and September 2018, only one application (for 37 homes at Exchequer House on Exchequer Row) was sent to the council.
Waiver declared a ‘success’
The report adds: “Following the introduction of the waiver, a greater number of applications for residential development have come forward and been approved.
“A number have been completed, others are under construction and a considerable number pending planning permission.”
Officers say this suggests the waiver “has been successful” in stimulating building.
And this week, councillors agreed to keep it in place until the end of 2025.
Could waiver be key to unlocking development amid tough times?
During a meeting on Wednesday, Conservative councillor Ryan Houghton asked about the potential consequences of dropping the waiver “given the tough construction environment”.
Planning chief David Dunne said it was a difficult question to answer, stressing that the “crucial aspect” is “to see planning applications turned into units on the ground”.
Despite their vocal opposition at the time it was enshrined, and again when it was renewed in 2020, the SNP voiced no qualms about keeping the policy in place.
Finance boss Alex McLellan told us the change of heart followed lengthy discussions with officers.
He said: “We need to ensure that we are creating an environment where people want to do business and invest in our city and that is what we are doing here.
“We want to transform our city centre and we cannot do that alone, it will require private investment.
“This is something that we dicussed at length with officers, and a major factor in retaining this was the sharp increase in construction costs.”
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Major developments in recent years
Developers have just a year to begin work after securing planning permission if they are to benefit from the waiver.
And the recently approved plan to turn Denburn House into 72 homes is one big-name beneficiary.
Developers behind the demolition of Greyfriars House to make way for 140 flats also praised the initiative.
Telereal Trillium said the Aberdeen affordable housing waiver had been a “beneficial factor” in discussions with housebuilders.
The Point development at Triple Kirks has been the largest scheme to benefit from the break, with around 340 homes.
Meanwhile, an application to turn Ruby House into 65 flats is still under consideration.
Why the need for the Aberdeen affordable housing waiver?
The main reason for the radical step has been to prop up the flagging fortunes of the city centre.
But the decision followed a study showing that developers were being put off building in the area due to the additional costs associated with work on listed buildings and in conservation areas.
It comes at a time when the council itself is driving forward separate plans to create more affordable housing in the city centre, such as the scheme for the block next to Aberdeen Music Hall.
Aberdeen affordable housing waiver to help prevent ‘desert’
During the 2020 debate, Marie Boulton warned the council needed to encourage city centre living or else risk having “a desert in the heart of Aberdeen”.
She was speaking only months into the pandemic that has since had a crushing impact on the city.
Mrs Boulton said: “We have to make sure we have a vibrant city centre which is a heart that beats, not one slowly dying because retail and office space is not occupied.”
You can watch this week’s meeting here.
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