Court halts houses sale over non-payment of levy

A court has put the sale of new houses on hold after a developer failed to make a cash contribution towards local infrastructure and services.

King's Lynn & West Norfolk Borough Council obtained the order over the non-payment of £118,00 of what is called Section 106 money.

It follows the construction of eight properties just outside the village of Wretton, near Downham Market.

The company at the centre of the dispute, EAM Developments, has been approached for comment.

The council said it had obtained an interim High Court order last month which was renewed on Friday. There will be a further hearing on 21 July.

Norfolk County Council is pursuing the same company over non-payment of money in relation to another development in the nearby village of Whittington.

Planning documents show the conversion of an old mill was granted permission back in 2016.

A spokesman for the county council said: "The funds due to Norfolk County Council to pay for local community infrastructure from the Whittington development remain unpaid, and efforts to recover these funds are ongoing."

One of the properties at the centre of the Wretton court order is a four-bedroom detached house off Low Road which is on the market for £600,000.

The land is on the site of a former social club.

Martin Peter Clark and Emma Malvina Beaton from Weeting, on the Norfolk-Suffolk border, are listed as the people with significant control of EAM Developments.

A Companies House listing states that it was incorporated in 2014.

Section 106 of the Town and Country Planning Act 1990 is a legally binding agreement and usually involves a council and a developer.

It ensures a contribution is made towards local infrastructure or services to make a development acceptable in planning terms.

According to the House of Commons library, in 2022/23 almost half of all affordable homes built in England were at least partially funded through this levy.

In the case of the amount owed to Norfolk County Council, it is understood the money was planned for schools and a library.

Jim Moriarty, West Norfolk Council cabinet member for planning, said: "Section 106 agreements are put in place on certain developments where planning permission would not otherwise be granted.

"They are an important part of the contributions that developers make to mitigate the impact of their plans and support affordable housing.

"Indirectly, failure to pay Section 106 contributions impacts on local people and we, as the local planning authority, have a duty to pursue non-payment."

He added: "We are continuing to work with Mr Clark to resolve this matter."

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