York Castle Mills scheme - claims flats are now 'unaffordable'

Labour candidate for the Guildhall ward Rachel Melly says council plans to build 106 apartments at Castle Mills on Piccadilly have been 'stalled' for a year.

And she has blasted what she calls a 'lack of leadership' from Liberal Democrat and Green councillors who have run the council over the last four years.

"York is in desperate need of both new housing and especially genuinely affordable housing," she said.

“The halting of this development around a year ago means the prospect of this housing being built in the coming years grows more and more remote.

Cllr Rachel Melly (Image: Supplied)

"Unfortunately, ruling councillors’ handling of this scheme and the wider Castle Gateway project is what has led to its stalling and now serious questions exist around its overall viability. That is bad news for the delivery of new, desperately needed housing for the city."

But Liberal Democrat leader Nigel Ayre has hit back - claiming that Labour councillors had 'opposed the Castle Mills project at every opportunity'.

"The comments from Rachael Melly are surprising given her party ... voted against the planning permission," he said.

The Castle Mills scheme is connected to the wider Castle Gateway project to transform the Eye of York and Piccadilly.

Following a major public consultation, a contractor was chosen to complete the Castle Gateway designs two years ago, in May 2021.

The plans then included a new public open space at the Eye of York where the Castle car park is now, regeneration of the Foss riverside, and a new foot and cycle bridge across to Piccadilly.

In 2021 the scheme was projected to cost £32 million - but the Castle Mills flats development was key, with the money from selling the flats expected to be spent on the wider regeneration project.

READ MORE:

• Challenges force council to put St George's car park bid on hold
• £3.5m spent on York's stalled Castle Gateway
• Castle Gateway and other major York projects WILL go ahead - council

Plans for the Castle Gateway were submitted in February last year. And in July it was revealed that nearly £3.5m had already been spent on the project, without a spade being lifted.

Cllr Melly said since planning permission was granted for Castle Mills, inflation had sky-rocketed. "That means the project as it stands is unaffordable," she said.

"Huge overruns and massive cost increases in major projects, from the community stadium to the Guildhall to Castle Mills, appears to be the hallmark of the current administration, calling into question its competency to run the city."

But Cllr Ayre said: "The biggest threat to this key regeneration scheme is a Labour administration. Their pledge to only provide affordable housing on council-owned land would leave a black hole in the business case running into millions of pounds."

Cllr Nigel Ayre (Image: Supplied)

Green leader Cllr Andy D'Agorne said the main reason for the delays was soaring inflation and rising construction costs following Covid.

"The Greens are very committed to taking forward the Castle Gateway project," he said. "When completed the Castle Mills development will bring significant improvements to this part of the city."