ONE of York’s biggest housing schemes has passed a major hurdle after planners struck a deal over how many homes should be affordable - just as a public inquiry got underway.

City of York Council and British Sugar have agreed that a minimum of three per cent of the 1,100 homes planned for the former sugar beet factory site in Boroughbridge Road must be affordable.

That is only 33 homes but the authority hopes the site’s value will increase and a review will later boost the figure.

The inquiry into an appeal by British Sugar against non-determination of a planning application for the development started on Tuesday.

The local authority’s counsel, William Upton, told the hearing then that it believed the site - which is contaminated and needs a huge remediation scheme - was capable of providing affordable housing.

He said the original proposal was not sustainable as it would not provide contributions for secondary education and viable affordable housing.

But Rhodri Price Lewis QC, for British Sugar, said the site was complex with a long industrial history and would be difficult and expensive to bring forward for housing. “The result of all this is that it is not possible to say now that the scheme will be able to support affordable housing from the outset," he said.

However, he stressed that British Sugar was not saying it was unwilling to provide affordable housing.

“Quite the contrary,” he said. “The appellants are confident that this scheme provides the ideal opportunity to boost significantly the supply of new homes in York and that that will include supplying both market homes and affordable homes of the types and tenures that the council wants.”

The inquiry was told yesterday there had been intensive discussions between the parties on Tuesday night and agreement had been reached about contributions for secondary education and affordable housing.

James Banks, a British Sugar consultant, said the parties were committed to providing affordable housing on the site as a matter of principle.

He said it was acknowledged the site would be developed over an extended period in excess of 12 years, and it was confidently anticipated its value would increase and a review mechanism would ensure this was translated into affordable housing.

“With this in mind, the parties are now agreed it will be appropriate to provide a minimum quantity of affordable housing which we have agreed at three per cent across the entire development,” he said.

British Sugar told The Press later that following recent constructive discussions with the council, a minimum level of affordable housing had been agreed in principle.

“In addition, the viability position will be reviewed at each phase of the development, to identify any opportunity to increase the level of affordable housing that might feasibly be provided,” it said.

“British Sugar remains committed to bringing forward the delivery of much needed new homes in York through the redevelopment of this key strategic brownfield site.”

Mike Slater, assistant director for planning and public protection, said it was ‘welcome news’ that an agreement had been found to put before the planning inspectorate and secretary of state.

“We’ve negotiated significant investment in community facilities including recreation and greenspace, education, highways and transport, as well as the agreement which could secure up to 20 per cent of affordable housing in the development,” he added.