Cityheart has advised the council and the Old River Lane Board that, following a review of the proposals, the scheme submitted in the current planning application is no longer financially viable in its present form.
This is extremely disappointing. The scheme had previously received support from the Old River Lane Board and was developed following extensive engagement and consultation with local residents, businesses and partners.
The viability challenges reflect wider market conditions affecting development projects across the country. Significant increases in construction costs, inflationary pressures and higher finance costs have all impacted the scheme. In addition, the proposals were designed around the build-to-rent market, which has experienced weaker demand and returns than anticipated. Taken together, these factors mean the current scheme cannot be delivered as originally proposed.
However, the vision for Old River Lane remains unchanged. The Board continues to support the ambition of creating a high-quality town centre destination, providing new homes, commercial space and a welcoming public square at the heart of Bishop's Stortford.
Cityheart, in collaboration with the council and the Board, is actively exploring ways to improve the scheme's viability while remaining true to these objectives. A number of revised options are being developed and assessed, including making more efficient use of the site, reviewing the road layout and exploring opportunities to increase the delivery of affordable housing, including the potential for a 100% affordable housing-led scheme.
The Old River Lane Board has asked Cityheart to bring forward revised proposals for consideration before any updated planning application is submitted.
Councillor Mione Goldspink, Executive Member for Neighbourhoods at East Herts Council, said: "We recognise that this news will be disappointing, particularly for those who have engaged with the project and shared their views during the consultation process.
"While the current scheme is no longer viable in its present form, we remain committed to delivering the long-term vision for Old River Lane. We know this site has the potential to make a significant contribution to Bishop's Stortford town centre, and we will continue working closely with Cityheart to develop proposals that are deliverable, financially sustainable and provide lasting benefits for our community."
Cityheart is the developer for the scheme and is responsible for bringing forward development proposals. As the landowner, East Herts Council, through the Old River Lane Board, will continue to work with Cityheart to ensure that any scheme aligns with the aspirations established for the site.
There is currently no confirmed timetable for submitting revised plans. Further updates will be provided as work progresses.