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Matthew Homes wants to halve its affordable housing at Thurston development off Meadow Lane due to economic climate





A developer wants to reduce the number of affordable homes at its new Suffolk estate due to the current unstable economy.

Matthew Homes Ltd has submitted plans to Mid Suffolk District Council to reduce the number of affordable housing at its 64-home development on land off Meadow Lane in Thurston, near Bury St Edmunds.

If approved, this would see the amount halved to 12.5 per cent from 35 per cent.

The site of the Thurston development on land off Meadow Lane. Picture: Google Maps
The site of the Thurston development on land off Meadow Lane. Picture: Google Maps

The developer said it would lose more than £100,000 from the land value if the original percentage of affordable homes went forward.

In the application, Matthew Homes said: “Construction costs have risen rapidly over the past few years whilst house prices have remained static and, in many instances, started to decrease.

“The cost of borrowing has increased substantially as a result of the general economic climate.

“Added to this the housing association market has taken a much more cautious approach to Section 106 affordable housing and for those that are still interested the amount they are prepared to offer for the units is at a much-reduced level than they were previously offering.”

There would be four flats and four houses on the shared ownership scheme if the proposals are approved and consultation is set to close on Tuesday, June 4.