A PLANNING loophole meant a developer avoided paying out £1million for affordable housing in Basildon when it converted a tower block into 384 flats.

Trafford House in Cherrydown East, Basildon, reopened in February this year after the former home of Ford’s European headquarters was converted into housing by developers.

Plans for 359 flats were originally granted outline permission in 2011, but a series of setbacks stalled the project.

Developer Criterion took over the building in January 2015, and a new scheme for 384 flats was later approved.

As a condition of granting permission, Basildon Council asked Criterion to contribute £1million towards affordable housing across the borough.

However, a Government decision to relax planning laws last year meant Criterion no longer needed to apply for full permission, as it was changing office blocks into flats, meaning there are less restrictions the council could impose.

The law change is to encourage empty office space to be brought back into use.

Kerry Smith, independent councillor for Nethermayne, is frustrated the council missed out on the money. as a result

He said: “It would have been handy to have that money for affordable homes, as we have a big need for it.

“The problem we have is that some of these homes here are just out of people’s price ranges. Take nurses at Basildon Hospital for example, they want to be living as close to work as possible, and should get more affordable homes.”