A developer who lost planning permission to build new flats after it tried to reduce the number of affordable homes is taking the council to appeal.

Stonegate Homes is hoping to build a six storey apartment building in Moulsford Mews, located near the old Battle Hospital site off Oxford Road.

The site is currently sealed off with hoardings, with the proposed new building to contain a mix of one, two and three bedroom apartments with two commercial units on the ground floor.

Previously, Stonegate Homes won approval to build the apartments with eight (30 per cent) of the flats being affordable in January 2021.

READ MORE: Plan for 26 flats near old Reading hospital branded 'quite dull' 

But before they begun construction, the developers sought to reduced the affordable housing provision from eight to three, made up of one one-bedroom and two two-bedroom apartments.

The reduction of affordable homes was applied for as Stonegate Homes submitted an economic viability assessment hoping to demonstrate that providing eight affordable homes would be economically unviable.

The planned reduction of the affordable flats was discussed at a Reading Borough Council planning committee meeting in October 2022, with the change being rejected by councillors.

READ MORE: Reading developer bid to reduce affordable flats on former hospital site rejected

However, now Stonegate Homes has appealed for the council’s refusal to the government planning inspectorate.

The committee went against the recommendation of planning officer Steve Vigar when refusing the plan.

At the time, Mr Vigar said: “Both the applicant and the council’s valuer agree that the current scheme is in significant financial deficit, and based on the figures provided, it would not be financially viable to build, particularly due to the increase in build costs since the previous permission was granted.”

The three affordable flats would represent 11.5 per cent affordable provision, which is below the council’s standard of 30 per cent provision.

The proposed reduction of affordable flats did not sit well with councillors.

Councillor Andrew Hornsby-Smith (Labour, Church) said: “I think if we don’t stick with our 30 per cent on this one our credibility in terms of that policy would be down to zero, because this is just about the ideal situation where it could be and should be implemented.”

Additionally, cllr Micky Leng (Labour, Whitley), lead member for planning, argued that it’s not the council’s job to protect developer’s profits.

Ultimately, the planning committee rejected the plan as it ‘fails to contribute adequately to the housing needs of Reading Borough’ according to the reason for refusal.

The appeal to get the decision overturned was launched on February 23, with it set to be decided by planning inspector Stephen Bartle.

You can view the rejected application by typing reference 220776 into the council’s planning portal.

The appeal can be tracked on the government planning inspectorate website using reference APP/E0345/W/22/3310834.

You can also view the plan approved in January 2021 using reference 201391.

Stonegate Homes has been contacted for a response.