The number of affordable homes for rent due to be built at a Rutland housing scheme have been drastically cut back as the national housebuilder says it cannot find a social housing provider to take the homes on. 

The planning committee at Rutland County Council was told by Persimmon Homes there is a national issue with 13,000 already agreed affordable rented homes unable to find a provider, due to finance issues and new legislation. 

Persimmon was granted planning permission to build 50 homes to the north of Cold Overton Road in Langham in 2022, 10 of which were due to be given to social housing providers for rent and five of which were to be sold as affordable homes, at 20 per cent less than market value. 

But Persimmon's head of partnership homes Amy Horobin, told the meeting on Thursday night (15th May) that the builder had approached 20 social housing providers, but none wanted to take the 10 homes on. 

The authority's head of planning Roger Ranson, told the committee the proposal to vary the current 106 legal agreement and allow Persimmon to provide just two affordable rent homes on the site and sell 13 affordable homes, was a 'last resort' and had been recommended with a 'heavy heart'. 

When asked what would happen if the committee refused the proposed reduction, he said: "It makes life impossible for the developer. What we are potentially ending up with is no development taking place, and no affordable housing taking place. That is the reality of the situation." 

Ms Horobin said: "This is not a case of removing affordable housing delivery from the site, it is a response to the failure within the current 106 housing market nationally. 

"Persimmon have engaged with the RP [registered provider] market since 2024, 20 RPs have been approached for these particular units and numerous tender processes have been followed, including East Midlands Homes, Accent, NCHA, Longhurst, to name a few." 

She said the issues were due to rising interest rates, which left the companies with funding problems. This was alongside new legislation which meant the providers were spending large proportions of their available finance on improving current stock. She said the firm had now found a social housing provider to take on the two homes, which would be gifted to them at the cost of £1. 

A number of the councillors at the meeting appeared annoyed at the changes. The authority's policy is to provide 30 affordable homes on new developments. 

Councillor Diane Ellison (Lib Dem) challenged Ms Horobin's assertions and said earlier that day the council had had a round table meeting with social housing providers who had said they wished to buy property in Rutland.  

But the Persimmon's manager said the social housing providers were looking to buy other homes, not homes provided by section 106 planning agreements, as the grants provided the government currently, did not allow for spending on 106 homes. 

Cllr Christine Wise (Lib Dem) asked what was stopping Persimmon from 'solving your own problem' and setting up its own social housing provider. 

Ms Horobin said the company had become an 'investment' partner with Homes England and was considering further steps. Persimmon posted a pre-tax profit of £359m in the year ended December 31, 2024. 

The committee agreed to the changing the legal agreement, with six councillors in favour, two voting against and one abstention.