The housebuilder’s plans for 200 homes across 34 acres off Lower Burgh Way, south of Chorley, were turned down by the council over a lack of affordable housing.
The proposal was first submitted to Chorley Council in 2016 without any provision for affordable homes but, after negotiations with the council, the developer agreed to include 35 homes available on social rent.
Taylor Wimpey also sought an overage payment to make up for the shortfall caused by the inclusion of affordable homes.
However, having carried out a further viability assessment last September, Taylor Wimpey reopened negotiations with the council and scaled back its offer of affordable homes to between 10 and 16 units, equating to 5% to 8% of the total number of homes.
One of the reasons for the revised offer was that the land value of the land had decreased by £1.1m since 2016, Taylor Wimpey said.
The company then made a verbal offer in April to potentially increase the level of affordable housing to the previously agreed level of 35 units, according to the council.
“The financial viability case put forward by the applicant does not adequately justify the lower level of affordable housing provision”, the council said.
Developments in the area should provide provision of between 30% and 35% affordable homes, according to the Central Lancashire Core Strategy, adopted in 2012.
A spokesperson for Taylor Wimpey Manchester said: “The delay to this site coming forward means we are not able to transition from building out our adjacent scheme onto this site, which will result in the loss of construction jobs locally.
“The proposals would provide more than £1.7m in Community Infrastructure Levy contributions to the council and in excess of £100,000 in Section 106 contributions for local green space and allotment improvements.”
The spokesperson added: “We’ve supplied comprehensive and robust evidence to the council to demonstrate that it is simply not viable to allocate 30% of the dwellings for affordable rent, as well as provide almost £2m in financial contributions.”
Taylor Wimpey is weighing up whether to appeal the decision.
Lichfields is the planning consultant for the project and Astle Planning & Design is the architect.