Persimmon Homes' bid to scrap a £573,720 affordable housing contribution for a 224-home development in Lesmahagow has been rejected by South Lanarkshire councillors.
Application refused
The application was presented at today's (August 11) planning committee meeting, with planning officers recommending refusal. Persimmon had sought to remove the entire affordable housing contribution attached to its plans for land around 350 metres south-east of Wellburn Farm, off Strathaven Road.
The wider development was approved by the council in August 2024, subject to a legal agreement requiring contributions towards affordable housing, education and community facilities. However, Persimmon subsequently applied to have the affordable housing element removed, while retaining its commitments to contribute £575,008 towards education and £224,000 towards community facilities.
Viability claim disputed
The housebuilder argued that the development had become financially unviable due to significant abnormal costs associated with the site. These included earthworks, drainage, roads, foundations, retaining structures and service diversions. Persimmon also stated that it has been faced with an unexpected £775,000 cost to divert BT Openreach fibre optic cables following the approval of a new roundabout providing access to the development.
The company had previously suggested changing the proposed roundabout to a signalised junction in an attempt to avoid the cost, but this was rejected by the council's road officers. A viability assessment prepared by Savills for Persimmon put the site's abnormal development costs at more than £6.3 million. But council officers disputed the company's justification for removing the affordable housing contribution.
Council stance
Councillor Ross Clark (Larkhall) questioned the future of the development. He said: “Just a question to clarify, the report talks about what the applicant sees as unviability, so what have they actually said will happen to the development if this application is refused? And is the council standing firm on the affordable housing element?”
Planning officials stated that it was up to the applicant to decide for themselves, there are a number of options available open to the developer and the council is keen for housing on that site. Planning officers said that costs such as retaining walls, earthworks and foundations were common risks associated with developments of this nature and should have been considered as part of the developer's due diligence before purchasing the land.
Policy and decision
Under South Lanarkshire's local planning policy, developments of 20 homes or more are generally expected to contribute towards affordable housing, with the policy allowing for up to 25 per cent of a site's capacity to be provided as affordable housing. National planning policy also sets a benchmark for at least 25 per cent of homes in new developments to be affordable, although this can be adjusted where evidence of local need or viability constraints supports doing so.
Planning officers concluded that Persimmon had failed to provide sufficient justification for removing the contribution. The recommendation to refuse the application was based on the proposal being contrary to National Planning Framework 4 and South Lanarkshire's policies on community infrastructure and affordable housing. The decision does not refuse the previously approved 224-home development, but it means that the existing planning obligations, including the £573,720 affordable housing contribution, remain in place.
