DEVELOPERS of a mothballed site in Horwich have won a long-running battle with Bolton Council to avoid giving any contribution towards social housing in the borough.

Government inspectors overturned the decision by Bolton Council — meaning Redrow Homes can now build 42 new apartments at the former Swallowfield Hotel site in Chorley New Road without giving any money or flats to the authority, to aid the shortage of affordable housing.

The company had appealed to the Planning Inspectorate after councillors refused to allow them to change their original agreement, made in 2007, which would see Redrow give four flats to a housing association.

Building work stalled when the global economic crash hit in 2008, and Redrow argued they had already lost £1.7 million on the development before even starting work.

The firm offered £50,000 instead to the council, which was also rejected by councillors on the planning committee who urged Redrow to stand by its original commitment.

Now, the Planning Inspectorate has allowed Redrow’s appeal of that decision, after hearing that if the apartment blocks were to include the affordable housing units, the developer would make a loss on the project — as opposed to an expected return of more than 20 per cent.

Authority planning officers had warned councillors at the planning committee in June to accept Redrow’s offer of £50,000 — or risk losing out on any contribution — but vice-chairman of the board Cllr Joyce Kellett said they were right to push for the four flats instead.

The Horwich councillor said: “I’m gravely disappointed and sad that we are losing this social housing.

“A lot of people can’t get on the housing ladder, are renting for a long time and never own their own property.

“We have people who live in Horwich, were born in Horwich who want to stay in Horwich but can’t afford to.

“I think it’s really unfair when developers who sell all these properties can’t put aside some units for low cost housing. I’m sure a multi-million pound business can accommodate this level of low cost housing.

“£50,000 wouldn’t have helped a great deal, but four social houses would have and far better for the people who needed those houses.”

The former Swallowfield Hotel was demolished in 2007 when Redrow started work on the site, with the foundations for the two blocks, with 21 flats inside each, constructed shortly after.

Redrow will still pay £12,615 towards primary school provision in Horwich and £10,000 towards the cost of off-site road works, as previously agreed.

Redrow Homes was unavailable for comment.