A development of 25 affordable homes is set to be built after agreement that a plot of Westmorland and Furness Council-owned land can be sold to a housing association.

Westmorland and Furness Council’s Cabinet has agreed that a 0.74-hectare site next to High Sparrowmire in Kendal can be sold to South Lakes Housing to help meet the urgent need for affordable housing throughout the area.

Cabinet was told that South Lakes Housing will pay £75,000 for the land, amounting to a significantly discounted price on the market value of £457,000.

Councillor Judith Derbyshire, Cabinet member for Housing, said: “Westmorland and Furness Council is committed to supporting the development of more, affordable, quality housing so that local families can build a life here and new people can be attracted to relocate.

“Making this land available to South Lakes Housing for less than the market value will enable 25 more affordable homes to be created and demonstrates that we take this issue very seriously and are prepared to take meaningful action to make a difference.”

When entering into land transactions local authorities are required to obtain the best price reasonably obtainable for the asset but may make a disposal at an undervalue if they consider that it will likely contribute to the promotion or improvement of economic and social well-being and/ or to support the provision of private sector housing and, in particular, for Westmorland and Furness affordable housing.

South Lakes Housing has planning permission for the development, which will include nine homes for social rent and 16 shared ownership.

Martha Shields, Head of Development at South Lakes Housing, said, “As a local housing association committed to addressing the acute need for affordable housing in Cumbria and Lancashire, South Lakes Housing is delighted to have secured this land in the market town of Kendal from Westmorland and Furness Council.

“As part of South Lakes Housing’s ongoing investment in existing and new build housing, the site will deliver 25 much-needed affordable homes, with 16 available for social rent and nine for shared ownership.

“The site will integrate into the existing Hallgarth Estate and will provide high quality, eco-friendly homes for local people.”

The land was originally acquired for housing delivery purposes and is allocated for housing as part of the South Lakeland Local Plan Land Allocations Development Plan Document.

Legacy authority South Lakeland District Council’s Cabinet had previously given approval in-principle to the disposal of the land, to enable a development of 100 percent affordable housing.

South Lakes Housing is an independent, not-for-profit housing association and is the largest provider of affordable rented housing in South Lakeland.