THE delayed plan to build a new town on the outskirts of Plymouth has been given the green light.

South Hams councillors gave their approval yesterday to the development of 5,500 homes in Sherford Valley south of the A38 at Deep Lane.

Building work could start next year – more than 15 years after the development was first launched – if Plymouth planners also give the thumbs-up.

The site extends over Plymouth's borders, and councillors on the city planning committee are expected to consider the final details of the application in February or March next year.

The ambitious scheme was first approved in 2008 and then tripped up by the credit crunch and the complexity of negotiations. A revised scheme was approved by Plymouth planners in 2009.

Members of the South Hams development committee were split by 15 votes to seven over the plan.

Keith Baldry, South Hams councillor for Yealmpton, attacked the decision because of a cut in the proportion of affordable housing.

Planners originally envisaged that half of homes would be "affordable", but the scheme agreed yesterday allowed for as little as 20 per cent affordable housing.

Mr Baldry said: "The committee has taken the wrong decision. There will be no benefit to the people I represent or the inhabitants of the South Hams.

"The proposed number of affordable houses is pitiful. Four out of five dwellings will not be affordable. Instead there will be a big influx of people to buy the expensive houses. This is not what South Hams residents need."

He said roads in the area, especially the A379, would be overwhelmed.

"The original proposal from the developer included a great many ideas for community facilities, shops, schools, transport and affordable houses. These were postponed in the plans agreed today. The three weeks allowed for public consultation was a disgracefully short time."

Mr Baldry is leader of the Liberal Democrat group on South Hams District Council and leader of the Opposition.

A spokesman for Red Tree, the developers, said: "The agreement approved by South Hams and due to be considered by Plymouth City Council follows extensive discussions with the planning authorities and consultation with stakeholder groups and members of the public over several years."

James Koe, partner at Red Tree, said: "The approval of the terms of the planning agreement is a key step in delivering the vision for Sherford and the benefits it will bring in terms of new affordable and market homes, thousands of jobs and hundreds of millions of economic investment in the South Hams and Plymouth.

"We welcome the decision by South Hams planners and look forward to a decision regarding the planning agreement by Plymouth City Council early next year.

"Should the Plymouth committee decide to approve the Section 106 Agreement, Sherford will then rapidly move on to its construction phase and we would expect to start work on site during 2012."

South Hams District Council said: "Red Tree sought agreement to provide 550 affordable homes during the first half of the development.

"In a recorded vote the development committee gave outline planning permission to approve the go-ahead of plans subject to agreement by partners Plymouth City Council.

"The Sherford project will include two wind turbines and business and commercial space.

"It will also have a town hall, public library, green spaces. It will be bus and bike friendly, have three new primary schools and one new secondary school, healthcare facilities, park and ride interchange, and community park."

The South Hams spokesman said: "No firm start date is yet available as detailed plans are still to be confirmed.

"Hopes are that, unlike in 2008 when initial outline planning was granted and then thwarted by a downturn in the economy, that there would be an earlier rather than later start."