PLANS for a new 555-home estate in Wallingford will be considered by South Oxfordshire district councillors tonight.

The application for the homes and a primary school at Slade End Farm off Wantage Road is recommended for approval.

Last month it emerged that a wish list of schemes for the town could have to be cut back if developers St Edward Homes failed to pay sufficient contributions towards local infrastructure improvements worth almost £1m.

Negotiations over the total cost of paying for improvement projects – known as developer contributions – were thought to be holding up the application but an agreement has been reached and the application is now ready to be considered by councillors.

In total, £13.8m worth of 'infrastructure' contributions have been agreed but there will only be 26 per cent affordable housing in the estate, below SODC's target of 40 per cent.

Councillors have been told in a report: "Amended plans were submitted in September last year to overcome several concerns from consultees and local residents.

"Since that time the scheme has undergone a viability appraisal.

"While the scheme has undergone a full infrastructure provision the viability can not support a target level of 40 per cent affordable housing."

The £13.8m includes £7.4m for education and £2.2m for public transport.

Wallingford county councillor Lynda Atkins said: "I think it is good news that we have finally got to this stage with the application, although it's a great shame that we are not going to have more affordable housing there.

"The guidance is 40 per cent but I gather that is not mandatory.

"The community facilities which developer contributions will pay for are very important but they might take a number of years to be completed – they won't happen overnight."

St Edward, a joint venture owned by the Prudential Assurance Company and Berkeley Homes, previously said it hoped work would start in 2017 once it had been given planning permission.

The town centre schemes included £91,300 towards work on a pavilion at the Bullcroft park, £285,825 towards improvements at the Regal Centre, and £249,000 towards increasing health and fitness facilities at Wallingford School and at Abbey Sports Centre in Berinsfield.

Town councillors had received a letter proposing cutting the total of £950,000 after developers suggested there would be difficulty reaching "a policy compliant" level of 40 per cent affordable housing.

SODC spokeswoman Patsy Cusworth said the council had allowed 26 per cent affordable housing on the basis it "would not be financially viable to provide a higher number".

She added: "The applicant has agreed to a review of the viability if the development does not begin within one year of the details being approved.

"This could enable more affordable housing to be provided in the future."

St Edward has not yet commented.

The planning committee takes place at Didcot Civic Hall at 6pm.