Homes at former supermarket site could be sold on open market despite 100% affordable housing promise
Twm Owen, Local Democracy Reporter
Homes planned for a former supermarket site could be sold on the open market, despite the development originally being approved as “100 per cent affordable housing”.
A legal agreement will only require nine of the 29 properties to be protected as affordable housing for social rent and for rent below the market rate.
Monmouthshire Housing Association, which formed a partnership with developers Hale Group to gain planning permission for the former Lidl site in Cwmbran, has said it is seeking funding to use more of the yet-to-be built properties as affordable homes.
Torfaen Borough Council which granted planning permission for the demolition of the site and the affordable housing development in November last year, said it could only legally require 30 per cent of the homes to be affordable in the agreement it had drawn up.
When the council’s planning committee approved the application in November the permission was tied to a Section 106 legal agreement which covers the provision of affordable housing as well as a contribution towards Croesyceiliog Comprehensive School and an improved crossing at Heol Llywelyn.
A report for the planning committee stated: “Full planning permission is sought to demolish the existing single storey retail unit and construct 29 dwellings with associated landscaping and parking. All the dwellings would be affordable housing.”
That agreement, which includes £78,000 for expanding or improving educational facilities at the school, has now been agreed between the council and Hale Group as well as Lidl which has agreed to the sale of the site.
Planning application
Despite the planning application having been for “100 per cent affordable housing” the legal agreement only stipulates nine properties are affordable with six for social rent, through Monmouthshire Housing Association as the nominated registered social landlord, and three at 50 per cent below market rent.
Monmouthshire Housing Association said it was its intention when the planning application was submitted, in May 2025, for the development to be “100 per cent affordable” but now aims to secure funding so as many as possible can be affordable.
A spokeswoman said: “MHA remains committed to maximising the number of affordable homes on the site and continues to explore all available funding opportunities to convert additional market‑sale homes to affordable housing.”
Torfaen council said it could only legally secure the required number of affordable homes as outlined in its planning policy which at the site is 30 per cent, and why the agreement only covers nine properties.
Monmouthshire Housing Association said the contribution to the school and the crossing total around £150,000 and demolition could begin within the next six to eight weeks.
Hale Group was contacted for comment.
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If planning permission restrictions on affordable housing cannot be legally enforced, as this case shows, then the law needs to be changed so when planning permission is awarded on that basis it CAN be legally enforced. One for the Senedd.