Housebuilders Persimmon, Northumberland-based Millhouse Developments and Barratt have fought off a second attempt by
The firms, which have all been working on schemes in the area, were at the Court of Appeal this week to oppose the policy.
It was implemented, in July 2007, as part of
The plan to force housebuilders to make one-third of those homes affordable was adopted following recommendations from an inspector appointed by the Department for Communities and Local Government.
However, David Keene LJ said that the policy was “legally flawed” and had failed to consider the need for economic viability. He said that the policy must now be changed.
Persimmon, Millhouse and Barratt challenged the policy as soon as it was introduced, claiming that the affordable housing requirement was unnecessarily high.
In May, the High Court found in favour of the housebuilders, and ordered a reconsideration of the policy.
