PLANS announced by the Government last month will see South Hams Council lose hundreds of thousands of pounds

for affordable housing and community ­projects.

The plans, which were announced on November 28, are intended to boost the building trade by no longer requiring developers to pay money under the Section 106 agreements on builds of 10 or fewer homes.

However, most S106 money – contributions to the local community for developments – is earmarked for affordable housing projects that the council will now no longer receive.

In December's Kingsbridge Town Council meeting, South Hams district ­councillor Simon Wright said: 'We're a ­designated rural area, so as a district council we can reduce that from 10 houses to five houses or less, apart from in the four main market towns of Kingsbridge, Ivybridge, Totnes and Dartmouth.

'This will lose £60,000 from the development of the old Rivermaid Boathouse on Embankment Road in Kingsbridge. The main problem will be that this will drive up land prices, as developers will no longer have to pay the contributions. It also means that small builders won't get a look-in at all.'

Plans to build two detached houses and garages on Warren Road would have meant £65,230 as an 'affordable housing contribution' and another £9,750 for open spaces, sports and recreation.

For just these two planning applications the council will lose £134,980 towards affordable housing and community ­projects.

In defence of his decision, the secretary of state for communities and local government Eric Pickles said: 'Small builders are being hammered by charges, which have undermined the building industry, cut jobs and forced up the cost of housing.

'By getting rid of these five- and six-­figure charges, we'll build more homes and help provide more low-cost and market housing.

'This will also be a massive boost to the self-build and custom-build sectors. Overnight in many parts of England it will be cheaper to build an extension, a family annex or just build your own home.

'Our long-term economic plan is helping hard-working people.'

Kingsbridge Town Council discussed the changes in its planning committee meeting on Wednesday, December 17, ­saying: 'Members received the Department for Communities and Local Government's press release, dated November 28, 2014, which reported that most S106 charges, developer contributions, would no longer be sought from sites of 10 homes or fewer.

'The move had been identified as cutting a stealth tax on new homes and a boost to small builders.

'However, members considered that S106 monies were essential to provide affordable housing contributions alongside open space, sport and recreation.

'It was resolved to request South

Hams District Council to lobby central ­government that the South Hams required S106 contributions from small housing developments.'

Devon county councillor for Kingsbridge and Stokenham Julian Brazil also commented on the changes.

'The latest changes to planning rules by the Government are a disaster for the South Hams,' he said. 'They'll do nothing to solve our need of housing for young, working, local families.

'Why would a developer build lots of small affordable houses when they can now build up to 10 large executive houses for millionaires?

'Before, our towns and villages could at least benefit from contributions required from developers, but no more. The South Hams is being sacrificed for the sake of housebuilding in order to try to stimulate economic growth – the type of economic growth that's completely unsustainable.

'As a Liberal Democrat I'm embarrassed that we're part of this coalition.'

The 10 or fewer houses must have a 1,000-square-metre limit; if 10 houses were to be built, then this would be in line with the average house size in the UK. But there appears to be nothing to say that developers cannot build two 500-square-metre houses or one huge 1,000-square-metre property.

A spokesman for South Hams Council said: 'Following the Government's announcement on affordable housing, we are now gauging the impact this will have on our affordable housing policies.

'We're hoping to be in a position to report back to the council on this issue in the next few months.'