Council sends national developer pre-action letter over alleged breaches of s106 agreement for large scheme

Walsall Council has said it is preparing to take legal action in the High Court against a national housing developer over an alleged breach of a section 106 planning agreement in relation to a 205-home scheme.

The local authority said the agreement with Countryside Properties UK intended to hand control of open spaces to residents in a recently built estate at Darlaston. All properties on the Wards Keep site in Heathfield Lane West in Darlaston have now been sold.

In a pre-action letter to Countryside Properties UK, part of the Vistry Group, Walsall suggested that there had been 10 separate breaches of the agreement signed when planning permission was granted in 2018.

“Despite having signed the legal agreement, the developer failed to hand over the land and management of the open spaces and continued to build the properties in breach of planning control,” the council claimed, adding that this included eight houses that do not conform with the original plans for the development.

The council said Countryside Properties UK has 28 days to comply with the legal agreement or face a claim for an injunction and substantial costs.

If the developer fails to comply with the council’s pre-action letter, Walsall will ask the High Court to grant an injunction to force Countryside Properties UK to comply with its planning obligations.

If an injunction is granted, the developer will be required to hand over ownership of the land and management of the open spaces to a management company.

The developer will have to put in place an open space management plan agreed by the residents, who will be members of the management company, the council added.

Cllr Adrian Andrew, Deputy Leader and Portfolio Holder for Regeneration at Walsall Council, said: “We have entered into significant and lengthy negotiations with the developer in an effort to try and resolve the situation by agreement. Unfortunately, we have had to prepare to take this action as the developer has consistently failed to remedy the situation and has now chosen not to co-operate with us.

“The residents of these homes were unaware until recently that they had signed up to an incorrect management company arrangement whereby the developer has ultimate control and has the ability to seek unlimited charges and can even evict occupiers for non-payment. This is unacceptable and unfair to residents. We have been left with no choice but to prepare to seek an injunction against non-compliance with the Section 106 agreement and the later planning application will no longer be progressed if the developer fails to resolve the issues. We have written to all affected properties, so residents are aware of the situation caused by the developer.”

Countryside Properties UK has been approached for comment.