IT IS feared key workers such as nurses and teachers will be priced out of the city centre after a second developer considered backing out of providing affordable homes.

Conservative councillor Mary Mears criticised developers for failing to meet the real housing need in the city after developers of a £80 million redevelopment told council officers they may not be able to provide any affordable homes as part of a 188 flat complex.

Matsim Developments insists there are ongoing discussions over the scheme near Hove Railway Station.

Cllr Mears, Conservative spokeswoman for housing, said: “When developers come forward with plans they say that the new homes will help to meet the planning need in our city.

“But if they are not offering affordable housing they are not meeting that need at all.

“Residents in the city on low incomes, key workers such as nurses and teachers, will be forced to move further out of the city.

“It’s going to cause real problems if we don’t have anywhere where key workers in the city centre can live.”

The news follows King Alfred developer Crest Nicholson’s offer to pay the council £1.2 million instead of delivering eight affordable homes at Davigdor Road, Hove, because they cannot find a social housing provider willing to take it on.

Green councillor David Gibson has called on the council to step in and take on responsibility for affordable housing in future private housing projects to ensure sufficient affordable homes are delivered.

Balcombe-based Matsim unveiled plans late last year for 188 flats as well as offices and shops in Ellen Street with plans submitted earlier this year.

In correspondence with the council, developers produced a report created by consultants which claims providing no affordable homes is the only viable option though they are willing to stretch to ten per cent – ten flats at affordable rents and nine for shared ownership.

The council’s housing strategy calls for 40 per cent affordable housing – ideally for this project 41 at affordable rents and 34 shared ownership.

The authority is awaiting a report by the district valuer for an independent assessment of what affordable housing would be viable.

Planning officers have also criticised proposals that would see a quarter of the flats fall below minimum space standards.

Andy Lambor of Matsim said negotiations were ongoing to ensure that the proposals coming to the planning committee were viable and could be realised.

He added: “Our consultants are still discussing the viability of the scheme in respect of the affordable housing provision, although this viability is affected by current build costs, the section 106 payments and the anticipated spend on public realm improvements.

“However we see no reason why the viable affordable housing provision should not be provided on site with our particular scheme.”