A total of 88 homes off Ferry Road forming part of Rye's biggest proposed housing development could be sold for £34 million, according to a property consultant's report.
A "financial viability assessment" drawn up by Bidwells as part of developer Plutus (Rye) Ltd's full planning application for the 1.4-hectare site reveals the prices that could be charged for the homes, while arguing at some length that it would be "unviable" to include affordable homes in the mix.
The proposed housing estate would be built on the former Thomas Peacocke School site.
The 46 private houses and flats are jointly valued at £20.45 million, while the 42 private retirement flats could bring in £14.18 million. The three and four-bedroom houses would likely sell between £475,000 and £600,000 each and the retirement units between £300,000 and £400,000 each.
The consultant's report assumes that if five of the private houses and 21 private flats are treated as affordable housing (30%) as part of its appraisal, the "gross development value" of the scheme would be £29.5 million.
However, as certain key figures in the Bidwell's report have been redacted by Rother District Council, or not included, the purchase price of the site and the construction cost are hidden, which makes it impossible to know the developer's net profit. The report does reveal a "benchmark land value" of £1.2 million for the site based on a 2014 Rother council viability study, but this amount does not include the value of the land for development purposes.
Counterintuitively, the proponents have assumed a £1 fixed land cost to "understand the return ... for the developer", when it is presumed that the council's sale price for the land must have far exceeded this amount.
Assessing the project's viability is made more complex by the fact that the developer is also the landowner.
Rother District Council would receive an estimated £984,095 as community infrastructure levy (CIL) if the project goes ahead.
The high building density of the project may also prove a sticking point for planners, given the planning authority's previous ruling that only 63 homes would be allowed. Land reserved for screening by trees may become another hot issue.
Members of the public are able to lodge comments on the new project (RR/2024/1/P) until February 23 via Rother District Council's website.
The major difference with the previous planning application is the inclusion of 42 residential care home flats, which allows Plutus to assert that it is providing much-needed accommodation for elderly people, while also — arguably — boosting its profit.
Documents reveal that the 46 homes for open market sale will include: nine four-bedroom and six three-bedroom "custom build" houses; 21 two-bed apartments, seven three-bed units, two one-bed apartments and one four-bed unit. There will also be 29 one-bedroom and 13 two-bedroom retirement home units.
An archaeological report suggested that a "programme of geoarchaeological evaluation" take place prior to development of the site.
