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A development in King’s Cross that was thrown out nine years ago because it failed to provide enough affordable housing, looks set to get the go-ahead – with even fewer affordable homes.

Developer Argent Limited has applied for permission to build 218 new homes on a site known as the Islington Triangle – 1.6 acres of former railway land located to the north-east of the massive King’s Cross regeneration site, on the border with Camden.

Argent want to build a tower block varying between 12 and 17 storeys in height and a second eight-storey tower, with 140 of the homes for private sale, 36 for social rent, 23 for shared ownership and 19 for private rent, as well as five shop units.

The plans that were put before councillors in 2007 would have provided 80 affordable homes but Labour councillors – who then held the majority on the council’s West Area Sub-Commitee and had numerous disputes with the Liberal Democrat-controlled Town Hall – wanted 100 homes for people on modest incomes and rejected the application.

However, outline planning permission for the site was granted by the Secretary of State on appeal the following year and Argent are now seeking approval of detailed plans, this time providing just 59 affordable homes – 27 per cent of the total. Islington’s affordable homes target on large sites is 50 per cent.

Caledonian ward councillor Paul Convery, who sits on the Town Hall planning committee that will make a decision on the plans on Tuesday, described the proposals as a “disgrace”.

“I’m incredibly disappointed that Argent have come forward with a planing permission frozen in ice eight years ago,” he said.

“Given the incredible profitability of the overall scheme, I’m exceptionally disappointed that only a quarter [of the new homes] will be affordable, and only 36 being genuinely affordable.”

He added: “Even the prices of intermediate housing are going to be incredibly high. So we’re effectively left with one in six homes being genuinely affordable and I think that’s a real disgrace.”

The triangle is bound by York Way, the East Coast main railway line and the Thameslink line, with the North London line and Channel Tunnel Rail Link close by. It is home to the King’s Cross Construction Skills Centre and has been used for storage.

Last year Argent, who are behind the massive £2billion redevelopment of King’s Cross, caused controversy after cutting the number of affordable homes to be built on the site – eight years after a legal agreement was signed with Camden Council.

The project was given the green light in 2006, with Argent promising that of the 1,946 homes, 750 would be affordable. But Camden agreed a change in a legal agreement, meaning the company could build 21 fewer social homes and 96 fewer “intermediate rent” homes, meaning the overall percentage of affordable housing dropped to 33 per cent.

Robert Evans, partner at Argent King’s Cross, said: “KCCLP’s development proposals for the Triangle site include a total of 218 homes of private sale, social rented and intermediate tenures, located in two buildings, and four units on York Way which will be a mix of retail and food and drink occupiers; there will also be some new car and cycle spaces provided.

“Our proposals will stitch together the two sides of York Way by improving the public realm – landscaping and streetscapes – both sides, and creating an active ground-floor experience in the new buildings. We hope it will turn a rather unloved, industrial part of the neighbourhood into a place which welcomes visitors from north and south.”