Developers behind a 650-home Holbeach project could pay £720,000 less towards the local community.
The revised South Holland application would also reduce the amount of affordable housing, writes Daniel Jaines, Local Democracy Reporter.
Plans for land between the A17 and A151 were previously approved at outline stage in 2016, following an application by RH and AM Goodley.
It would have provided 33.3 per cent of the build as affordable homes and submit £5,006,751 towards education, health and roads provision.
However, in the eight years since, the applicants have submitted a viability assessment arguing that market conditions have become “more difficult and uncertain”.
A joint application with Lincolnshire County Council offers to build just 20 per cent affordable homes (around 130) and contribute £4,286,511 – £720,240 less than originally asked for.
Officers believe the final total should be £4,343,950, which will allow for some contribution to highways works at Peppermint junction.
Analysis by the officers of the most recent viability assessment said: “In terms of the current market conditions, the applicant is correct to suggest the climate is more difficult and uncertain than it was in February 2022.
“Build cost inflation has grown significantly since this time, and whilst this was initially matched by sales price growth, more latterly further increases in the Bank of England base rate and subsequent sharp increases in mortgage rates has meant house prices are not faltering.”
They said there were signs were that prices were “already falling”.
“It is therefore difficult to criticise the applicant’s description of the current market and also the sentiment that viability pressure has increased in recent months,” they wrote.
They said the principle of development on the site had already been established and that the proposal would not materially harm the amenity of nearby residents.
“The conclusions of the independent viability assessment indicate that reduced developer contributions are acceptable subject to a review mechanism in respect of the phased approach to the delivery of affordable planning.”
The plans form part of a Sustainable Urban Extension in the area.
