A proposed 500-home development will revive Leatherhead’s economy and remedy a housing shortage according to the council which owns part of the land.

Countryside campaigners have condemned plans to build on the greenbelt and allotments holders have fought to save their plots, but Mole Valley District Council argues that the development would breathe new life into the town.

The council and Oxford’s Merton College have selected Barratt Homes as the preferred developer of the 32-acre site by the Leatherhead Bypass.

It has been suggested that the development would lead to more than £3m of additional spending in the town centre a year.

At a press briefing on Friday, Council leader Councillor Chris Townsend said: "This just reinforces our commitment to try and ensure Leatherhead becomes yet again a viable centre.

"It will lead people to think 'yes Leatherhead will start to get some vitality back to its town centre.' That economy can be improved quite considerably by this."

If the deal goes ahead, the council will receive £21 and Barratt Homes will pay up to £4m as a community infrastructure levy to support the homes.

Coun Townsend said: "Obviously it will put strains on education and health. We can’t get away from that fact. Barratt has already said they are looking at health provision on the site which I think alleviates some of those issues."

 

The council is currently under pressure to remedy a shortage of homes and meet housing targets.

Richard Burrows, corporate head of services, said: "Two hundred affordable houses would really help alleviate some of the logjam on the waiting lists where people are trying to move into better accommodation.

"Getting that number over say a four year period would be beneficial to those on waiting lists and housing associations in the area. That would be a really positive implication."

The Campaign to Protect Rural England (CPRE) has spoken out against building on greenbelt land owned by Oxford's Merton College and is working to mobilise opposition to the plans.

But Councillor Charles Yarwood, portfolio holder for community and assets, said: "If that greenbelt land does become allocated for housing, it takes some of the pressure off greenbelt land elsewhere."

The selection of the preferred developer was shrouded in secrecy until last week due to the requirements of the procurement process.

On Friday the council declined to reveal what the rival bids had been but confirmed that other proposals had included a retail village.

Coun Townsend said it was a ‘great shame’ that councillors had to debate and make decisions behind closed doors.

He said: "It’s quite amazing it’s been kept so quiet and secret and nothing has leaked."

Barratt Homes will pay £550,000 to relocate Barnett Wood Lane Allotments and £100,000 towards the council’s legal costs.

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