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A government decision to reject a major Persimmon housing development on the grounds of poor design has thrown down the gauntlet to the housebuilding industry, observers have claimed.

In a move that may set a precedent for the National Planning Policy Framework鈥檚 (NPPF) presumption in favour of sustainable development, communities secretary Eric Pickles cited the need for quality design in rejecting a planning appeal made by Persimmon Homes over its proposal to build 203 homes in the Lancashire town of Colne.

Persimmon鈥檚 proposal was rejected by Pendle council, which lacks a five-year development plan, in January, sparking an appeal by the housebuilder.

Pickles, however, upheld the decision of the planning inspector to dismiss the appeal.

He said in a letter sent last week that there was 鈥渓ittle evidence of a design-led approach to the appeal scheme and little attempt to connect the housing into its countryside setting鈥�, adding that Persimmon鈥檚 proposal fell 鈥渟ignificantly short鈥� of the expectation for high-quality design in the local plan and the NPPF.

Low design standards remain a 鈥渨eakness鈥� among major housebuilders according to this year鈥檚 Next Generation report, published exclusively in this week鈥檚 好色先生TV.

David Birkbeck, chief executive of industry lobby group Design for Homes, said the decision made it clear that sustainable development must involve good design, adding that Persimmon would have succeeded by using 好色先生TV for Life 12, the latest industry standard for well-designed homes.

Planning partner in Hogan Lovells, Mike Gallimore, said: 鈥淭he decision shows the presumption in favour of sustainable development and the lack of a five-year housing supply will not mean permission will automatically follow.

鈥淥ther criteria need to be met and good design is a key element.鈥�

Peter Jordan, strategic land director for Persimmon鈥檚 north division, said housing was needed in the area but that the site had a 鈥渃hallenging topography鈥�.

He added: 鈥淚t is our intention to work with the council to seek to address the inspectors鈥� concerns.鈥�