The pandemic-induced delay has raised the costs from £26.6 million to £28.7 million
A major council housing development in York has been hit by some delays due to the pandemic – pushing the cost up by £2.1 million.
But City of York Council says that thanks to rising house prices in the city, the homes at its Lowfield Green site are set to bring in around £3 million more than they expected.
Work continues at the site where 165 new homes are being built. The development involves 56 affordable homes, 19 in a communal scheme, six self build and the remaining 84 sold at market price.
All homes up for sale in the first phase have been reserved, with £1.8 million of sales in the first four weeks. The second sales phase saw key workers get priority for the shared ownership homes and these are all reserved.
The development has been delayed, according to a council report, which says: Much of the impact was due to the pressure from the Covid pandemic, including delays from services subcontractors being placed on furlough for extended periods and the realities of working in new ways to remain Covid secure.
This has raised costs from £26.6 million to £28.7 million.
However, the report adds: House prices have risen since the valuations undertaken in 2018 and the current property valuations indicate that there is likely to be an increase in sales income across the Lowfield site of around £3 million.
It says: The large village green and play area will be completed and open to the public in the summer 2021 providing valuable community focus and amenity space for residents of Lowfield Green and the surrounding area.
The articles are for information purposes only and Invest for Property shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.
Invest for Property does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.
Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
Credit: Source link
