DEVASSIST: Council backs 1,600-home town centre scheme despite zero affordable housing provision
Solihull Metropolitan Borough Council has unanimously approved proposals for a major town centre redevelopment delivering up to 1,600 new homes, despite the scheme containing no affordable housing or section 106 contributions.
The decision follows officer advice that the authority’s significant housing land supply shortfall weighs heavily in favour of approval.
Regeneration plans for Mell Square
The council acquired the Mell Square shopping centre in April 2021 and later appointed Muse Places as development partner in October 2023.
Plans submitted last year outline a comprehensive mixed-use neighbourhood comprising:
- Up to 1,600 homes
- 300 hotel rooms
- 56,588 sq m of commercial and non-residential floorspace
- New shops, restaurants and public realm
Full planning permission was sought for phase one, which includes demolition of the existing shopping centre buildings and construction of a 346-unit apartment building with ground floor commercial space and associated amenity areas.
Outline consent was sought for a further eight phases, delivering up to 1,254 additional homes alongside hotel and commercial development.
Viability at the heart of the decision
A central issue was the absence of affordable housing and Section 106 financial contributions. The developer’s viability assessment concluded that the scheme could not support policy-compliant contributions.
That appraisal was independently reviewed by Cushman and Wakefield, acting as the council’s strategic land advisers, who agreed there was a clear viability case for phases one and two to proceed without affordable housing or section 106 obligations.
Later phases will be subject to viability re-testing at the reserved matters stage.
Officers acknowledged that the proposals would not preserve the setting of nearby heritage assets, including the Solihull conservation area and listed buildings. The report also noted the scheme would not deliver the level of open space infrastructure normally required, citing viability constraints.
Housing land supply pressures are decisive
Despite identified harms, officers concluded that the public benefits of regeneration carried substantial weight. These benefits included:
- Diversification and revitalisation of the town centre
- Re-use of previously developed brownfield land
- Economic uplift
- Delivery of much-needed housing
The council currently has a 2.13 year supply of deliverable housing land, significantly below the five-year requirement. Officers described the recommendation as finely balanced but ultimately advised that the presumption in favour of sustainable development under the National Planning Policy Framework applied.
The planning committee approved the scheme unanimously on 6 February. Construction is expected to begin this summer.
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