The decision was made at the council’s planning committee meeting, where Persimmon had sought to remove the entire £573,720 affordable housing contribution attached to its plans for land near Wellburn Farm, off Strathaven Road.

The wider development was originally approved in August 2024, subject to a legal agreement committing the housebuilder to contributions towards affordable housing, education and community facilities. Persimmon later applied to strip out the affordable housing element while keeping its pledges of £575,008 for education and £224,000 for community facilities intact.

The company argued the scheme had become financially unviable because of unexpected costs linked to the site, but council officers were not persuaded, disputing the case put forward for dropping the affordable housing contribution.

A Persimmon Homes spokesperson said the cost of diverting fibre cables had put significant extra pressure on the viability of the site.

The spokesperson told Scottish Housing News: “The additional cost of diverting fibre cables, which was unknown at the time of the planning application, has placed significant additional pressure on the viability of our Lesmahagow site. We are disappointed that the council did not take this unforeseen cost into account.

“Having previously delivered a number of developments across South Lanarkshire, we are committed to maintaining our presence in the area, supporting local jobs and delivering much-needed new homes for local people. We have therefore taken the decision to proceed with the development, despite the additional cost pressures.

“We believe this is the right decision for South Lanarkshire and will enable us to deliver the new homes, jobs and wider benefits that the development will bring – including £800,000 of funding for upgrades to local schools and community facilities.”