Gentoo defends decision to back out of £80,000 infrastructure payment linked to 100 homes plan

City bosses reluctantly allowed Gentoo to cancel the agreement after the organisation claimed the extra cost would make the scheme ‘unviable’.

But some in the Coalfield have raised concerns over how the area will cope with extra families moving in without the cash and criticised Gentoo for payouts made on other developments.

“There should be extra money for schools because there will be extra houses there,” said Linda Wood, who stood for election to Sunderland City Council’s Houghton ward in 2018.

“Gentoo are claiming poverty but this is ridiculous and what other areas are getting is immaterial to the people of Hetton.

“The original estate’s first phase was built on a Gentoo site which was bungalows, it had a green area and a small community centre.

“It may have been in need of refurbishment or rebuilding, but instead they were all demolished and a new estate of detached and semi-detached houses will take its place – Gentoo must be making a huge amount out of it.”

Gentoo was originally granted planning permission for 99 homes on the land in Houghton Road, Hetton, last year when it also agreed an ‘S106’ agreement worth £80,000 for infrastructure improvements around the site.

But in October a new application was submitted seeking permission for development to go ahead without the payment due to ‘abnormal site costs’.

A city council planning committee approved the revised scheme, but also expressed concerns about the level of detail given over why the change was necessary.

Responding, Michelle Meldrum, Gentoo’s executive director of operations, said:

“Gentoo Homes submitted a viability assessment to Sunderland City Council, which was reviewed and then approved at the committee meeting.

“Phase two of the development will be built on land that was previously used for agriculture and has never featured any houses or buildings.

“Therefore a significant amount of work is required on this site to prepare the ground, relating to the topography of the land, poor ground quality across the site and the diversion of a sewer that runs through the middle of the land.

“The viability report for this part of the scheme stated that affordable housing would not be financially viable, however, Gentoo Homes provided 20 per cent affordable housing on phase one of the scheme which was completed in March 2019.

“With Sunderland City Council requiring 10 per cent affordable housing on new sites, this was double the amount required.

“In addition to this, Gentoo Homes has committed to a significant level of section 106 contributions to Sunderland City Council as part of new developments this year, totalling over £700,000.

“Gentoo Group is committed to providing affordable homes for rent in Sunderland, which has been demonstrated by the announcement earlier this year to bring 900 additional homes for rent across the city over the next five years.”