Plans to redevelop ‘outdated’ sheltered flats and housing have been downsized after rising costs.
North Kesteven District Council has cut the total number of new and refurbished homes to be built in North Hykeham by two.
The original plans passed before the pandemic had a budget of just under £4million, but the expected price had risen once legal costs, house loss payments and other fees were added up.
The council faced a decision of whether to deliver the original 34 homes for a cost of £4,988,500, or to scale the plans down.
Council leader councillor Richard Wright said the revised plans offered the best value for money for the council.
Members unanimously agreed with the motion to build 32 homes instead for a budget of £4,581,000, an increase of £655,200 on the original cost.
The original plans projected 18 new two, three and four-bedroom homes built on Grinter Close.
The 14 flats for the elderly in Grinter House will also receive their first refurbishment in almost 30 years.
A report by North Kesteven District Council said the scheme was motivated by high demand for homes in North Hykeham and the unpopularity of the Grinter Close homes.
Tenants were put off by “dated design, institutionalised environment, small unit size and poor access to individual homes via a central internal corridor”.
The new updated flats will each get their own entrance and increase floor space to make them more attractive.
The report adds: “There is need for additional council homes in North Kesteven. North Hykeham represents and area of high demand.
“The revised scheme [with fewer homes] maintains the opportunity to regenerate an area of outdated and limited housing to deliver new and more suitable housing in the area.”