An application to redevelop the Swepstones site in Holbeach has been rejected by South Holland District Council.
It was hoped that seven homes could be built on the site at Battlefields Lane North, but outline permission was turned down by the council’s planning committee after a lengthy discussion.
Concerns were voiced in particular about the loss of a commercial site and the lack of access to any potential local amenties.
Councillors heard from planning officers that the site has been on the market since 2016, but has failed to sell.
Committee chairman Coun Roger Gambba Jones said: “It’s not a good site to have somebody living there. There has to be a sustainability query.”
Coun Bryan Allcock commented: “It has been marketed for some time. Are we satisfied that this place is finally reduced to what is a commercial price for that site in that location?
“Holbeach is going to grow - might someone find this the perfect commercial site?”
Concerns were also expressed over the flooding risk raised by the Environment Agency and the proximity of the site to the A17.
Coun Michael Seymour, who lives close to the site, said: “That part of the A17 is busier than the A1 at Grantham - it can take 10-15 minutes just to get across the road.”
His concerns were echoed by Coun Harry Drury, who said it “would be difficult to get out of that road and to do that every single day would be an absolute nightmare.”
Coun Andrew Tennant compared the application to a recent decision made to refuse permission for the development of a garden centre for housing, which was turned down primarily on the grounds of the potential loss of a commercial site.
He added: “Someone else could take over the land and provide employment.”