Plans to redevelop Albany House, a former children’s care building in Ilkeston, will go ahead without the developer paying money towards local services, following a decision by councillors.
The scheme, approved in 2024, allows a private developer to convert the building into 28 self-contained homes. The development itself was not being reconsidered – councillors were asked only to decide whether it should proceed without a Section 106 agreement.
What changed?
When planning permission was originally granted, it was expected that the developer would make a Section 106 contribution. This is money developers normally pay to help support things like schools, GP services, transport and other local infrastructure affected by new housing.
However, that legal agreement was never completed.
The developer has now returned to Erewash Borough Council saying the project is no longer financially viable and that they cannot afford to make those payments.
What councillors were told
During the meeting, councillors were told that Albany House has already been extended and now stands at four storeys, following the addition of two extra floors.
They were asked to decide whether to allow the development to move forward without any financial contribution towards local services.
Debate at the meeting
One councillor spoke of frustration, saying private developers should be expected to give something back to the community, particularly when homes are being created for profit.
Other councillors took a different view, arguing that the development still provides additional housing, and that insisting on payments could risk schemes like this not being completed at all.
The decision
Following discussion, councillors voted 10 in favour and three against allowing the development to proceed without a Section 106 contribution.
Why it matters
The decision highlights a wider issue faced by councils across the country – balancing the need for new housing with ensuring local communities benefit from development.
In this case, Albany House will still be converted into 28 homes, but no money will be paid by the developer towards local services or infrastructure.