Ashwood Homes set to agree to compromise over Holbeach Meadows development after bid to cut affordable housing and A16/A151 roundabout cash

A developer tried to get out of commitments on affordable housing and payments for a new roundabout as part of a major housing scheme – but now looks set to agree to a compromise deal.

Ashwood Homes had applied to South Holland District Council to ditch 142 affordable homes and a £1 million payment it had agreed towards the A151/A17 Peppermint Junction as part of the 900-home Holbeach Meadows development in Hall Gate.

The firm submitted a viability assessment alongside its application which suggested the development would be on track for a £7.7 million loss even without the affordable homes and financial contributions.

However, the district council ran the figures past an independent assessor and they disagreed with the developer’s verdict.

On Wednesday night, members of the district council’s planning committee will be asked to agree to an alternative new ‘section 106’ deal instead.

This would mean that just two affordable houses would be cut from the scheme – taking it down to 140 for the phases in question – and the money paid towards the now-built Peppermint Junction would be £900,000 instead of £1 million.

Ashwood would also be allowed to delay the repair and refurbishment of the Grade II listed Manor Farm house until after the occupation of the 330th dwelling.

A planning officers’ report issued to councillors ahead of the meeting stated: “In conclusion, if the S106 agreement was modified to allow for a reduction in the amount of affordable housing to 140 units and that the payment towards Peppermint Junction be reduced to £900,000 and the trigger for the restoration of Manor House be modified, this would be considered acceptable.”

The committee will be asked to agree the ‘concept’ on Wednesday so that officers can then iron out the details.

To date, 98 homes have been built. The number of affordable houses to be delivered had already been cut from 33.3% to 25% in a deal struck in 2019.

A fourth and final phase, of 100 affordable homes, was due to be kept.

There were no proposals to change the education contribution to come from the development.

This will lead to £300,000 towards the cost of a new primary school within the site after the occupation of the 100th home. There is also a requirement for a ‘serviced parcel of land’ to be given to the county council for the new school.

At the meeting on Wednesday, members will also be asked to amend the conditions to a new link road between Hall Gate and Fen Road that will be part of the development.