Preston reaches accord over affordable element of 443-home scheme
A hurdle standing in the way of Morris Homes and CEG’s proposed redevelopment of 52 acres in Cottam could be overcome this week, after the city council’s planning team accepted the developers’ argument that affordable homes within a neighbouring scheme should count towards their total.
Preston City Council and the developers have been in discussions over the last few months about a way forward for the 443-home project south of William Young Way after a resolution to grant planning permission was granted down in April.
Planning approval was given to housebuilder Morris Homes and land promoter CEG subject to the signing of a Section 106 agreement containing an obligation to provide 10% of the homes as affordable and a viability review mechanism.
The mechanism would allow for the scheme’s profitability to be analysed independently in the future to see if additional contributions towards affordable housing could be made. It was proposed due to the fact the scheme offered bellow Preston City Council’s 30% affordable policy target.
During talks between the council and the applicants since April, the latter made it clear that such a mechanism would be a barrier towards securing development finance for the scheme.
A planning report prepared by Preston City Council states that “a mechanism which introduces uncertainty over the financial obligations attached to the development part way through its delivery is problematic from a funding perspective and would jeopardise the ability to secure funding for the scheme”.
As a result, the parties have sought an alternative way forward that takes into account the benefits offered by a 100% affordable development on neighbouring land.
Housebuilder Breck is delivering 102 affordable homes off Sidgreaves Lane immediately east of CEG and Morris Homes’ site. As this plot was previously being promoted by CEG for the same consortium of landowners attached to the 443-home scheme, the applicants argue a holistic approach to the affordable housing question should be taken.
Assessing the CEG/Morris scheme and the Breck one together as one project, the 30% target can be reached.
The upshot is that Morris will build 62 of the 443 homes as affordable. Taken together, with the 102 homes being built by Breck on the neighbouring plot, 164 of the combined 545 homes across the two schemes will be affordable.
The professional team includes David C Smith Architects, Ascerta, Barnes Walker, Banners Gate and UES.
Documents relating to the scheme can be viewed on Preston’s planning portal, reference 06/2025/0240.
Preston City Council has recommended the scheme be approved on this basis. The application will be considered on Thursday.
Also up for approval on Thursday are plans to convert the former Odeon at Preston Docks into a self-storage scheme, 60 homes off from BDW Trading off Tabley Way in Cottam, and the demolition and replacement of a student scheme off St Thomas Road with a six-storey block containing 31 flats.
All three are up for approval. The plans can be viewed on Preston’s planning portal by searching for reference numbers 06/2026/0240, 06/2026/0065,and 06/2025/0620 respectively.

