Council threatens developer with High Court action over legal agreement

Walsall Council has said it is preparing to take legal action in the High Court against Countryside Properties, after ten breaches of a Section 106 agreement.

The council claims the national housing developer is in breach of a planning agreement that’s intended to hand control of open spaces to residents at a recently built estate of 205 homes in Darlaston.

Countryside, which completed a £1.2bn merger with Vistry Group in 2022, is accused of a lack of cooperation over ten separate breaches of the agreement, which was signed when planning permission for the Wards Keep site was granted in 2018.

Despite the Section 106 agreement, the council says the developer failed to hand over the land and management of the open spaces and continued to build the properties in breach of planning control. This includes eight houses that do not conform with the original plans for the development.

It has given Countryside 28 days to comply with the original deal or face a claim for an “injunction and substantial costs”. If the developer fails to comply with the council’s pre-action letter, the council says it will ask the High Court to grant an injunction to force Countryside to comply with its planning obligations.

If an injunction is granted, the developer will be required to hand over ownership of the land and management of the open spaces to a management company and include residents in an agreed plan.

A Countryside spokesperson told TheBusinessDesk.com:“We are aware of this action which is disappointing given we have been in regular contact with the Council in an effort to resolve this matter, and we are now reviewing their position.

“We are keen to work with them to resolve this issue as quickly as possible.”

Cllr Adrian Andrew, Deputy Leader and Portfolio Holder for Regeneration at Walsall Council, said, “We have entered into significant and lengthy negotiations with the developer in an effort to try and resolve the situation by agreement. Unfortunately, we have had to prepare to take this action as the developer has consistently failed to remedy the situation and has now chosen not to co-operate with us.

“The residents of these homes were unaware until recently that they had signed up to an incorrect management company arrangement whereby the developer has ultimate control and has the ability to seek unlimited charges and can even evict occupiers for non-payment. This is unacceptable and unfair to residents.

“We have been left with no choice but to prepare to seek an injunction against non-compliance with the Section 106 agreement and the later planning application will no longer be progressed if the developer fails to resolve the issues. We have written to all affected properties, so residents are aware of the situation caused by the developer.”