Greater Manchester Combined Authority (GMCA) has approved a £5.3m loan for the construction of new apartments in Stockport – though the plans do not include any affordable housing. The Apsley Street project, off Wellington Street and Churchgate in the town centre, received approval in January 2021 and will include the building of 34 new homes with the financial backing of the GMCA.
Apsley Street Development Ltd, the developer leading the scheme, is contributing £160k towards affordable housing initiatives elsewhere in Stockport, along with £150k dedicated to local open spaces and children's facilities.
Concerns have been mounting more widely over the escalating costs of home ownership in Stockport, exacerbated by a shortage of affordable housing options.
Local leaders say this issue has helped lead to 'unprecedented' levels of homelessness within the borough, alongside a social housing waiting list of 8,000 people facing a 12-year wait. A government report released in December highlighted that Stockport has one of the lowest rates of housebuilding in the country, having constructed just over half the number of required homes from 2020 to 2023.
Additionally, the cost of temporary accommodation is on the rise, with Stockport predicted to spend approximately £1m on emergency housing this year. Last year, Stockport MP Navendu Mishra raised concerns about the "ever worsening crisis of supply and demand" for housing in the area in a letter addressed to council leader Mark Hunter.
The GMCA report on the loan stated that the Apsley Street scheme will 'support the redevelopment of a brownfield site,' and that the Fund's credit committee recommended the loan for approval. The authority's Housing Investment Loans Fund has contributed to the creation of over 11,000 new homes around the region, with loan offers exceeding £1bn, reports .
However, the loans fund recently faced scrutiny following a legal challenge by Aubrey Weis, owner of Weis Group, regarding loans awarded to property developer Renaker. The group accused the GMCA of granting loans to a major developer at an interest rate below 'commercial terms', which they claim 'distorted the operation of the market for property investment.
The GMCA responded that it has been providing investment loans for several years and is "confident in [its] processes."
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