THE developer of the Silver Hill scheme in Winchester has done a U-turn over the issue of affordable housing.

Henderson has announced it will guarantee at least £1 million towards building homes for rent.

It had said that its contribution to social housing would depend on how profitable the development was.

That raised the prospect of the £165m scheme possibly not making any payment at all for social housing.

Now Henderson has submitted a statement within its planning application to revise the scheme, pledging a minimum of £1 million.

It said it recognised the importance to the city council of the provision of affordable housing.

The first £1m of this will be guaranteed and the second £1m subject to the scheme achieving a profit level of 15 per cent.

Revisions to the scheme will go before the planning committee on December 11. A scheme that included 100 affordable homes and a bus station got planning permission in 2009.

Henderson’s stance on not building any social housing within the Silver Hill site remains.

The dropping of social housing and the new bus station has attracted much local opposition.

Martin Perry, director of development at Henderson, said: “We have listened very carefully to what people in Winchester have told us about their concerns for affordable housing and made the best proposal we can.

“By making an off-site contribution, we believe the council will be able to use that money to provide to use as it wishes to provide affordable housing. We are reasonably confident and sincerely hope that the scheme will be do well enough to make the full £2m contribution.”

Rob Humby, council leader, said: “I am pleased that Henderson has been able to take this approach which means that, if it is approved, the revised scheme will directly finance affordable housing in Winchester. I can confirm that the council as a landowner has not changed any of its financial arrangements with TH Real Estate in order to achieve this.”

Planning policies require provision of 40% affordable housing unless it can be demonstrated that such a level is not viable. The affordable housing statement demonstrates that based on recognised standards of viability the scheme would not be required to make an affordable housing contribution.

It was revealed in August that the scheme is set to make a £15m profit.