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Mansell : Blackhill Housing Development, Glasgow

Project by Glasgow City Council / Mansell Partnership, Scotland

31 Oct 2008

Blackhill Housing


Glasgow City Council (GCC) is to help house builder Mansell Partnership Homes weather the current financial storm by extending a development agreement between the two parties.

The proposal agreed by the Council’s Executive Committee today (31 October 2008) will mean that Mansell’s Blackhill housing development in the east of the city that has been affected by rising construction costs and slow sales will now be completed two years after the original end date, in August 2012.

The partnership agreement will also be revised to allow the cost of securing and maintaining the remainder of the site until building can restart to be deducted from any surplus profits that both parties share.

Mansell will now continue to market the houses and build to order as firm sales are confirmed.

The 218-home development, all of which were intended for private sale, could now also include options for socially rented housing and shared equity ownership.

Rather than see the developer turn their back the project due to current market conditions, as has been seen in other parts of the country, the Council has chosen to work with Mansell to come up with a solution which benefit both parties.

In 2004 GCC granted Mansell a license to occupy a Council owned 8.27 hectare site in Blackhill. Mansell paid for the five year licence to develop the site for private housing and the Council also stood to receive 50% of any surplus profits if house prices and the value of the land increased over this period.

The first two phases saw 124 homes sell well in the area but the completion of phases three and four by August 2009 were put in doubt when the effects of the global financial situation were felt throughout the country earlier this year.

Both the developer and the Council agreed that the severity of the current market crisis made the existing contract unfeasible and to support the developer and ensure the Blackhill housing and regeneration project is completed the Council has revised the original development agreement.

Councillor George Ryan, executive member for development and regeneration services, said: “The Council is acutely aware of the effects of the current financial crisis on the construction industry and as such we are taking pragmatic steps to both ease the pressure on the developer and to ensure that this housing and regeneration project in Blackhill is completed in the future.

“This course of action is in the best interests of both parties and it also ensures that the local community will not be left with a half finished housing estate on their doorstep.”

Blackhill Housing Development information received 311008

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