DEVASSIST: Council ordered to pay developer’s full costs after refusing 17-home scheme despite housing land supply shortfall

A planning inspector has ordered Wiltshire Council to pay a developer’s full appeal costs after determining that councillors acted “unreasonably” in refusing a small housing scheme that officers had recommended for approval.

The proposal involved building 17 homes on part of a former police station site in Chippenham. Inspector Hollie Nicholls concluded that the authority’s significant shortage of deliverable housing sites meant the scheme should not have been blocked.

Developer Codex Land PCC submitted a full planning application to Wiltshire Council in June 2024 for a residential development on a 0.44-hectare section of a disused police station site.

The plans proposed 17 homes, including seven affordable units.

Despite a recommendation from planning officers to approve the project, councillors refused permission in January 2025. Members raised concerns relating to design, sustainability and environmental impacts.

Following the refusal, the developer lodged an appeal with the Planning Inspectorate.

Housing land supply position examined

In her decision letter dated 12 February 2026, inspector Hollie Nicholls identified design, sustainability and environmental considerations as key issues, but also placed significant emphasis on the council’s housing land supply position.

Wiltshire Council maintained it could demonstrate a 2.42-year supply of deliverable housing sites. The appellant argued the figure was slightly lower at 2.03 years.

Regardless of the precise calculation, the inspector concluded that the shortfall remained significant.

“In any event”, she stated, the council’s housing land supply shortfall was “considerable”.

Because of this, the National Planning Policy Framework presumption in favour of sustainable development applied. This meant the council’s housing supply policies carried reduced weight.

Nicholls noted that the scheme complied with the development plan, stating that it was “not strictly necessary to conclude other than that the development complies with the development plan”.

Even if this had not been the case, she added that the planning balance would still have supported approval because of the authority’s housing shortage.

Appeal allowed and costs awarded

The inspector allowed the appeal and granted permission for the development.

She also ruled that Wiltshire Council should pay the developer’s full costs.

The appellant argued in its costs application that the council had “prevented or delayed development which should clearly have been permitted”.

It also claimed the authority had failed “to produce evidence to substantiate each reason for refusal” or “to provide objective analysis in relation to the vague, generalised or inaccurate assertions about the proposal’s impact”, Nicholls noted.

While councillors are not required to follow officer recommendations, the inspector concluded that the scheme was either compliant with planning policy or could have been made acceptable through planning conditions.

She emphasised that several material considerations pointed towards approval, including the council’s housing supply deficit.

As a result, Nicholls found that the authority had “behaved unreasonably” and awarded full costs to the developer. The decision letter does not specify the amount that will ultimately be paid.

Council response

Liberal Democrat councillor Adrian Foster, cabinet member for strategic planning, development management and housing, pointed to recent changes to national housing targets as a factor behind the authority’s housing supply position.

He said:

“Because of this, planning applications for new homes in sustainable locations are more likely to be approved than might otherwise be the case, to help meet local housing needs.

“However, Wiltshire is performing well when it comes to building homes, delivering much-needed homes for residents. Over the past three years, we’ve built 135 per cent of the homes we were expected to, which is well above the government’s target for that period.”

He added:

“There are about 17,300 homes currently planned for Wiltshire. Some already have planning permission, and others are included in future development plans but haven’t been approved yet. Out of these, around 9,000 homes are expected to be built within the next five years.”

Councillor Foster continued:

“In situations where a costs award is made against the council, the appellant has the opportunity to submit a costs claim to the council. Where that happens, we will review what is submitted to make sure any costs paid are accurate and reasonable”.

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