Developers involved in a multi-million pound regeneration scheme in Devon are trying to back out of providing affordable housing.

Planning permission was granted for the scheme in Newton Abbot in 2000 because of an agreement to make 35% of about 50 dwellings affordable.

Now developers ASM Limited are claiming the low-cost housing element is not financially viable.

Local councillors are to hear an assessment from an independent consultant to find out if this is the case.

It makes one wonder whether it's just pressure to delete this from the plans Jim White, Newton Abbot Town Council

The Wolborough Street redevelopment will see derelict buildings demolished and an Asda supermarket built.

Development at nearby Bradley Lane with affordable homes was part of the original plans.

But developers have submitted evidence to Teignbridge District Council of claims the scheme is no longer financially viable.

They have said because the site is brownfield, it will be very expensive to develop.

Newton Abbot town councillor Jim White said: "They must have known this when they made their first explorations.

"It makes one wonder whether it's just pressure on the council to delete this from the plans."

The council has hired an independent consultant to assess the evidence.

Maximise receipts

Ward councillor David Howe said: "The bottom line is they have to give economic proof that it is affected by affordable housing."

However, Jim White said: "Let's face it, they will make sufficient money from this to make it worthwhile otherwise a large group like Asda will not get involved."

But Keith Beynon from ASM said: "There was an element of affordable housing as part of the scheme but we need to maximise our receipts to complete everything."

If the developers do have the affordable housing element removed, Teignbridge District Council could seek compensation.