Newport City Council is taking legal action against Barratt Homes in a dispute over roads at a new housing development.
Last July, a notice under Section 219 of the Highways Act 1980 was served on Barratt Homes, requiring the payment or securing of £840,000, under Section 220 of the same Act, to cover the cost of street works at the planned development, on a former school site in the suburb of Bettws.
Brian Kemp, Newport’s head of engineering and construction, said: ‘Barratt has started construction of the new dwellings on-site, without securing payment of the sum required, and is, therefore, operating illegally and liable to prosecution. Barratt has indicated that it wishes the roads within the development to remain in private ownership, with long-term maintenance and ownership being passed to a private management company. Barratt, therefore, deems the requirements of the Highways Act Section 219 to be unnecessary.’
He continued: ‘The council’s position is that it is a legal requirement to satisfy the Highways Act in respect of Section 220 and secure the sum required, irrespective of whether the roads are to be adopted or not.’
Developers which arrange for local authorities to adopt completed roads pay a bond, and cover the costs of inspections throughout construction. However, Barratt intends to keep the roads at the Bettws development private.
‘The absence of a Section 220 payment or bond, or an adoption agreement, places the property owners and the council at risk of liability for future maintenance, should the management company cease operating,’ added Mr Kemp.
The council could then be liable for claims for future adoption of roads which had been constructed to an unknown standard and specification. ‘With the Section 220 money in place and retained in perpetuity, the money would be available for street works, should the management company default,’ he said.