Local councillors have visited the first housing scheme in the South Hams, where a combination of second homes council tax money and pioneering planning policies have provided 25 affordable homes.
Two of the householders at Lister Way, East Allington, opened up their new homes to councillors on April 4.
The £2.5m scheme by affordable housing provider Tor Homes was the first in the South Hams to place an obligation on the developer to build one third rented, one third shared ownership and one third open market sale.
Tor Homes teamed up with the owner of the greenfield site, house builder Millwood Homes, to provide 12 homes for rent and 13 for shared ownership.
Millwood Homes built 13 homes, including two live/work units for open market sale.
The housing company worked closely with the local authority, South Hams District Council (SHDC), to provide the new dwellings and nominations for the homes came from SHDC's waiting list.
As a condition of the land disposal and the planning permission, the council put certain restrictions on the site, in order to safeguard the housing for local people.
Designed to compliment the rural scene, the scheme was funded by second homes council tax collected in the South Hams and given back by Devon County Council to SHDC, together with funding from the Housing Corporation and a subsidy from Tor Homes.
The greenfield site is located on the edge of the village and was identified for residential use within the draft South Hams Local Plan.
Bob Hatfield, Tor Homes: "So many local people are experiencing difficulty in finding a home of their own to buy or rent and we are committed to working with the local authorities and the Housing Corporation to offer housing solutions for local people."
The scheme was brought forward as a departure to the adopted plan to respond to the level of housing need.
John and Darrel Finch and their two grown up children were on the waiting list for eleven years and say their new home is perfect.
"We absolutely love this house," said John.
Malcolm and Cheryl Mercado previously lived in a small cottage in Kingsbridge and work locally.
They have taken the first step on the housing ladder by buying a shared ownership house. They now have a nine-month old daughter, Marea.
Cheryl said: "We are so happy that we have finally got a foot on the housing ladder."
Bob Hatfield, chair of Tor Homes, said: "So many local people are experiencing difficulty in finding a home of their own to buy or rent and we are committed to working with the local authorities and the Housing Corporation to offer housing solutions for local people."
Cllr Isabelle Steer, SHDC's executive member for housing said: "The East Allington development is an outstanding example of what can be achieved by the partnership working between SHDC, the Housing Corporation and Tor Homes, with a contribution from second homes Council Tax money.
"It is the first scheme to be completed which meets our challenging third/third/third targets and I am delighted that 25 quality affordable new homes have been provided for the South Hams."
Devon County Council leader Brian Greenslade added: "I am delighted to see the county council’s extra money from second homes council tax is helping people where the need for affordable homes is at its greatest and supporting the good work undertaken locally by SHDC and Tor Homes.
"No county council in the country has invested more in affordable and extra care housing.
"We hope this will prove of real benefit to local people needing decent homes."


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