Funding problems hit Fanshawe Road redevelopment in Cambridge

A Cambridge development that was branded “immoral gentrification” when it was first approved is now facing funding problems.

Cambridge City Council revealed that the project to redevelop Fanshawe Road it approved earlier this year does not qualify for Homes England grant funding, as had been expected.

The authority applied for funding but was told the rules to qualify for the grant had changed.

The council has agreed a workaround that it hopes will enable it to qualify.

Three blocks of flats in Fanshawe Road are due to be demolished to make way for 84 new homes under the redevelopment, planned by Cambridge Investment Partnership, a joint venture company between the city council and developer Hill.

Of these new homes, 45 are due to be made available as affordable housing and rented out below the market rate.

Councillors approved the plans in March despite some residents opposing it and branding the plans “immoral gentrification”.

At a planning committee meeting last Wednesday (7 August) councillors were told that the redevelopment as approved offered more affordable homes than required by the city council’s policy.

Ben Binns, assistant director for development at the council, said they had met with Homes England representatives, who confirmed a change in Homes England grant funding rules meant the project did not qualify because it offered more than the council’s policy requirement, but was also not a completely affordable housing development.

He said the Cambridge Investment Partnership was still “committed” to making 45 of the 84 homes affordable housing, so a workaround was proposed.

But councillors were asked to approve the development with only 40 per cent affordable homes, so that it was compliant with the council policy and would qualify for the grant funding.

They were also asked to agree that a memorandum of understanding be exchanged with the developer, agreeing that the additional 11 homes would become affordable housing once further grant funding is available.

Cllr Dave Baigent (Lab, Romsey) said it was “regrettable” that the application had come back before the committee again.

Officers confirmed no other schemes were impacted by the changes.

Cllr Naomi Bennett (Green, Abbey) was concerned the plan might create another problem.

She said: “I would just like to double check on what steps we have taken to ensure coming forward this memorandum of understanding will not create a further breach.”

The council’s legal advisor said the memorandum had been sent to solicitors for comment but was “optimistic” the memorandum would meet requirements. If it did get “knocked back” the council would have to reconsider its approach, the advisor said.

Concerns were raised again about the number of single aspect homes within the development.

Cllr Katie Porrer (Lib Dem, Market) had raised the issue at the March meeting that 13 of the affordable homes would only have a window on one side.

Officers said mitigation measures were proposed to prevent overheating and said the blocks would be designed to Passivhaus environmental standards, although they would not get the official certification.

A majority of councillors agreed to approve the development and support the memorandum of understanding.