224 homes at Strathaven Road, Lesmahagow, Lanark

“Description of Proposed Development 3.1. The application relates to an existing planning permission for the erection of 224 dwellings with associated infrastructure and landscaping on land 350m southeast of Wellburn Farm, Strathaven Road, Lesmahagow granted under application reference P/23/0293.”

“The current proposal is an application under Section 75A of the Act to modify planning obligations for P/23/0293, removing the previously agreed affordable housing contribution of £573,720. The applicant has supplied an alternative form of Section 75 agreement wording that they are proposing would supersede the original agreement.”

“Site Description 2.1. The application site relates to land located on the north-western edge of the settlement of Lesmahagow. The site extends to approximately 11.3 hectares and is located within the settlement boundary as identified in the adopted South Lanarkshire Local Development Plan 2 (SLLDP2).”

“Relevant Planning History 4.1. As noted above, permission for a residential development and associated works was approved at Committee on 27 August 2024 under application reference P/23/0293 with planning permission being issued in March this year.”

“Loss of the entirety of the affordable housing contribution would leave a significant shortfall in funds which have been identified as necessary as part of the approved development. This loss of funding would ultimately require to be met by the Council which is not considered to be acceptable and is not in compliance with either national or local policy. As such, the proposal is considered to be contrary to Policy 16 of NPF4 and Policies 7 and 12 of SLLDP2.”

“The proposal is contrary to Policy 7 – Community Infrastructure and Policy 12 – Affordable Housing of the South Lanarkshire Local Development Plan 2 as the agreed affordable housing contribution is necessary for off-site provision and its loss will result in a shortfall of funds, and as no viability concerns were raised during the application assessment process which would have been the appropriate time for such matters to be discussed.”

“Viability Assessment The viability assessment report prepared by Savills and submitted as supporting information to the proposed modification advises that abnormal development costs associated with the delivery of this site stands at £6,328,901, which includes the requested fibre optic cable diversion cost.”

“The report advises that assessing the financial viability of the site, including the above costs, and adopting a profit margin acceptable to the applicant, has rendered the development unviable. As such, the viability assessment has considered alternative profit margins to identify what level of contributions the site could still be developed under.”

“There followed a discussion on the application during which an officer responded to a member’s question on an aspect of the report.”

“The Committee decided: that planning application P/26/0407 by Persimmon Homes West Scotland for the erection of 224 houses with associated infrastructure and landscaping (application under Section 75A of the Act to modify planning obligations for planning consent P/23/0293 to remove affordable housing contributions) at land 350 metres southeast of Wellburn Farm, Strathaven Road, Lesmahagow, Lanark be refused for the reasons detailed in the Executive Director’s report.”