New houses hit by credit crunch

PLANS to build the first new homes under the Housing Market Renewal initiative in Werneth could be hit by the credit crunch.

The Spencer Street development was touted as an eye-catching modern scheme in 2006 when young architects across Europe were invited to put forward designs.

The area was cleared of a number of commercial and industrial buildings in preparation.

But the futuristic plans never took shape and and earlier this year HMR bosses said new plans were likely to be submitted this summer.

Now Oldham Council has revealed that the full planning application could be submitted as late as December with a start next spring.

The overall multi-million-pound Pathfinder scheme, which covers Oldham and Rochdale, was granted a further £90 million for the next three years’ work in April this year. And Cabinet member for housing and community services, Councillor John McCann, said meetings are being held with HMR and developers.

He added: “We are trying to push things forward but one of the biggest problems we have at present is the state of the housing market.

“Partners are very wary about starting schemes if they cannot sell them.

“And in the next two years the HMR money could be plus or minus 10 per cent, so if we get a 10 per cent variation that loss is a lot of money.

“We are taking a look at the whole HMR area, and how we can give developers support.”

Four leading developers have already been chosen for the HMR areas in Derker and Werneth. BASE — a joint venture between Barratt and Artisan, the Manchester-based specialist developer — will work in the south Werneth area.

Oldham Council has agreed to contribute half the costs (up to £230,000) of preparatory investigations and early design work before the Spencer Street scheme goes to the HMR board for approval, and underwrite any unforeseen costs up to £250,000.

The council has also agreed to pay up to half of the detailed design and planning application costs, up to £270,000, and underwrite any further payments up to £270,000.

Mark Glynn, HMR head of strategy said: “We are aware that negotiations are continuing between Barratt and Artisan regarding the future of their joint venture, BASE.

“Officers are working with BASE to ensure it continues to meet all requirements to deliver its commitments, which includes the plans for Spencer Street.”