MP wants to tighten the rules to ensure promised affordable homes are delivered
Martin Wrigley has pledged to raise the issue in Parliament after councillors in Teignmouth last night voiced concerns
Last updated 14th Jan 2026
Questions are to be asked in Parliament to stop developers being able to reduce how many affordable homes they build.
It comes as Teignmouth Town Councillors last night voted on trying to stop a site on Higher Exeter Road being able to reduce its 25 per cent affordability allocation as part of a viability assessment.
The developer, Harrington Homes, has issued a long statement explaining that it has spent two years trying to get an affordable housing provider on board - and the original application always allowed a 'viability assessment' to be conducted.
The MP for the Teignbridge area Martin Wrigley said: "A good builder will actually look at a site and work out what they can afford to do and then make the commitments where they commit to building the affordable homes - and there's a negotiation at the beginning of that where they can say ie 'this is a complicated site to build and we've got to do this and we've got to do that'.
"Most people aren't aware that in the national law, the NPPF framework, builders can expect a 20 per cent profit margin - so if you think of 20 per cent of the price of a house, that's the profit builders will get.
"If they drop below that because the site is costing them more to build than they expected they can negotiate on the grounds of viability to reduce the number of affordable houses.
"I would like Parliament to remove this viability argument as they've signed up to that negotiation having done their homework on how much it's going to cost them to build the site - and they are now saying they can't afford it, which either means they are not competent to do that surveying in the first place to actually guarantee how much it's going to cost them or it's being greedy in trying to wriggle out of those agreements and those responsibilities."
Teignmouth Town and County Councillor David Cox says by pricing out key workers, with a lack of affordable homes, towns like Teignmouth will be unable to thrive - adding: "It's take, take, take from Teignmouth and no gain."
He added: "Teignmouth has got a housing problem as people like nurses or people who are not well paid but do vital jobs to help our community need homes. They would have got some of the homes."
What has the developer said?
Harrington Homes have applied within a Section 73 Planning Application to include an independent Viability Assessment on the scheme.
A spokesperson explained the 'viability is being reviewed by the local authority currently’ and that ‘no decision has been made and no discussions have currently been entered into around what this final viability looks like'.
They explained that the 'costs of the scheme have significantly increased' and it has spent 'two years trying to get an affordable provider on board with the project and have to date had zero interest and no offers to purchase and operate these affordable homes in this area. Further compounding the viability of delivering these homes'.
The application number is14/00447/MAJ and the Teignbridge planning portal can be found here
What has the Home Builders Federation said?
In a statement, a spokesperson explained: “On occasion it may be necessary to renegotiate some elements of the initial planning agreement to ensure the site is still viable to develop.
"The planning process can take years to navigate to the point where construction work can actually start, during which changes in the housing market, house prices, material or labour costs or elements such as unforeseen ground conditions, unknown at the point the initial planning agreement can have a major impact on the viability of a site.
"If elements do have to be renegotiated, there is a clear and transparent process in place, during which both the developer and local authority appoint independent assessors, to ensure any changes are justified and necessary.
"All developments deliver significant broader benefits over and above much needed for sale houses including affordable homes and infrastructure and amenities that benefit both new and existing residents.
"It is essential the whole package remains viable, or the development will not come forward at all and there will be no new homes or benefits to the local community.”