THE AMOUNT of affordable housing provided as part of a major development in Newport looks set to be halved.

More than 600 homes have already been built at the site known as Glan Llyn, as part of a redevelopment of the former Llanwern Steelworks approved in 2010.

However the key housing site is not delivering homes at the anticipated rate and is now 'unlikely' to meet a target of 1,337 homes by 2021, a council report says.

The site is also now said to be 'unviable' with a 20 per cent affordable housing provision, which was agreed when the application was approved.

No phase of the development has yet delivered the agreed provision of 20 per cent affordable housing.

Proposed changes to the terms of a section 106 agreement would see the amount of affordable housing changed from 20 per cent to 10 per cent, to protect the viability of the scheme.

A library and police station agreed to be provided from a local centre would also be omitted.

Money for new bus services will be halved from £1million to £500,000 under the proposed changes.

A contribution of £8 million for Hartridge and Lliswerry schools will be split evenly between the two.

IN OTHER NEWS: Schools close as weather warning for snow and ice upgraded to amber

School bandings for Gwent and Wales schools announced

Between 2011 and 2018, 743 affordable homes have been completed against the anticipated target of 916.

A report by the applicant's agent, prepared in 2017, demonstrated the site was 'unviable' at a 20 per cent affordable housing level.

A district valuer agreed with the assessment, and said viability would be restored at a level of nine per cent affordable housing.

Two developers are currently on site but both are said to be coming to the end of their developments.

No reserved matters have been approved on subsequent phases and a report says this may be due to "on-going uncertainty over the level of contributions the council requires and other masterplanning issues."

The report says: "Agreement to the reduction of the affordable provision will allow the site to continue to deliver planning and wider benefits in the public interest.

"However this will come at a clear cost, that being a reduction in the amount of affordable housing that the site will provide and some reduction in other contributions as outlined.

"However the risk is that should the revision not be agreed that the site will be mothballed to such a time as it can deliver acceptable levels of profit to the developer.

"At this point it will cease to make any contribution to local housing targets either affordable or market."

Planning officers have recommended the proposed changes to the section 106 are approved by Newport council's planning committee at a meeting next week.

It is also recommended a review mechanism is put in place "to safeguard the council’s future position."

This would allow the viability of the scheme to be revisited, and if probability improves, contributions to be enhanced.