Sheffield houses: £50m Fulwood development at fire-hit NHS office delayed again

Sheffield City Council has asked for more time to decide whether to allow 15 large houses and 52 flats on the former NHS site on Old Fulwood Road.

Officials asked developers Espresso Properties for an extension of time to August 22. The request was granted.

It is the second extension after the authority in January asked for an extension until June 30.

The plot includes listed Fulwood House and an eight-storey office, which was the scene of a fire last month.

The site overlooks the Mayfield Valley, is on the boundary of Fulwood Conservation Area and is almost surrounded by green belt.

Some 166 objections have been submitted over the appearance of the proposed estate and loss of trees and green space.

Plans were first lodged in November 2023. Amendments were made in May 2024.

Since then, Sheffield City Council has announced a push for 38,000 homes to meet government targets up to 2039.

Documents filed on behalf of Espresso state the development is ‘unviable’ if the authority insists on a £6.1m payment in lieu of affordable housing.

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A report written by consultants CBRE states: The residual profit margin fails to meet the target risk-adjusted developer’s return of 20 per cent on gross development value.”

It goes on to say that even without the £6.1m the ‘residual profit margin remains negative’.

And it urges the council to show “flexibility.”

It adds: “It would be CBRE’s recommendation that the council provides flexibility in the application of Local Plan policies to assist in facilitating delivery of redevelopment on an underutilised brownfield site.”