MP Sarah Wollaston has added her voice to concerns that fewer affordable homes may be built as a result of changes to the amount of money local authorities receive from ­housing developers.

As reported last week, plans announced in November by the Department for Communities and Local Government mean builders of up to 10 houses will no longer have to sign Section 106 agreements with local authorities, although 'designated rural areas' such as the South Hams may choose to lower the threshold to five.

Much of the money received as a result of the agreements

is earmarked for affordable ­housing provision, with the rest put towards open spaces, sport and recreation, schools and other infrastructure.

In response to the Gazette's story, Dr Wollaston said: 'I raised my concerns about the proposed changes to S106 payments in Parliament at DCLG questions, and directly with ministers for precisely the ­reasons highlighted in your ­article. While the intention was to reduce the costs for local small-scale building projects, and thereby the cost of housing, in an area such as ours there are unintended consequences.

'I welcome the reduction of the threshold to five in areas of outstanding natural beauty and the national parks as a result of campaigning, but still feel that local councils such as ours should have had the ­flexibility to be able to set their own thresholds, or be able to continue with S106 for all ­luxury developments.'

While the minister for communities and local government Eric Pickles argued that removing S106 obligations for small developments would encourage small builders and result in more low-cost and open-market housing, others disagree.

Speaking at December's Kingsbridge Town Council meeting, South Hams councillor Simon Wright said: '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.'

District and county councillor Julian Brazil, who is set to stand against Dr Wollaston for the Totnes seat in this year's general election, went further, saying that the changes were a 'disaster for the South Hams'.

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

Given that just two small developments in Kingsbridge would have netted South Hams Council £134,980, the authority is likely to miss

out on millions as a result of the changes.