An infill development of three terraced homes in Brookfield has been given the go-ahead by councillors.
Community Gateway Housing Association applied for permission to build on land formerly used for garages at Barden Place.
A spokesman for Halsall Lloyd Partnership outlined the reasoning behind the plans.
He said: “Small schemes such as these need to have a certain size property to be economically viable.
“Gateway has considered all the former garage plots in the city, as it owns many. It chose this one and although regretfully it needs to use some of the green space on the site to achieve a size a property which is suitable in this financial climate.”
The scheme has drawn 17 objections from local residents who are concerned about the loss of green space.
Councillor David Borrow who represents Moor Park said similar Gateway schemes were greeted in the same way.
He said: “It’s often the case we see objections but once people see the houses go up they realise it makes a positive difference to the area.”
Councillor John Bruton, Cadley, said the planning committee needed to consider the economic benefits such a development could bring.
“In these times we need more housing,” he said, “we must applaud Gateway for taking on this scheme and putting in the investment. It is easy to forget that housing is an economic investment and must make a return.”
The Bardon Place scheme would see three two-bedroomed houses erected each with a garden.
Council officers said the objections about a loss of green space were not valid as the area already had ample parks and other play areas.
Councillors voted to approve the plans.
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