Worthing's Teville Gate: Council receives £5million offer from Homes England to build 250 homes

It has been revealed Homes England has offered the council £5.1 million for the derelict Teville Gate site in Worthing Town Centre to develop 250 homes there, in a report for the council’s Joint Strategic Sub Committee, or cabinet, meeting on March 14.

The report states due to Homes England’s involvement, the development could ‘likely’ produce more than the council’s required rate of 20 per cent affordable housing for new developments.

Teville Gate was purchased by the council in 2021 by borrowing around £7.4 million, including fees and tax, with the intention of ‘unlocking’ and selling the freehold land in three years to a developer.

Homes England’s purchase of this site, if approved by the council’s cabinet, is hoped to come through this month as a capital receipt, which will then be used to reduce the council’s debt related to the site from £7.4 million to £2.1 million.

The report states the council hopes to save around £850,000 over three years in interest payments, as its annual interest payments reduce from £354,000 to £112,000.

The council also hopes to generate £100,000 from parking charges retained in the Homes England deal.

The report also says a benefit of dealing with Homes England, is their offer is unconditional and the capital receipt would be received in-year, unlike private developers who would take longer to get the funds and be subject to planning permission.

The decision on the deal will be made by the council’s cabinet at the JSSC meeting, with some details and the final decision to be held behind closed doors.