Delays over plans for almost 100 homes at a derelict factory site in Leyland look set to continue.
Developers Bellway Homes were granted planning permission for 98 homes at the former Prestolite site in Cleveland Road in November 2009.
But work on the site has been held up while a decision is made over a Section 106 legal agreement about affordable housing and open space.
Planning chiefs at South Ribble Council advised councillors at a planning committee meeting on Wednesday night that some unresolved legal matters meant there have been hold-ups in the signing of the 106 agreement.
They recommended issues should be dealt with through extra planning conditions, instead of by a legal agreement, in an effort to speed forward the plan.
But councillors voted to defer a decision for another three months to see if the developer and their bank could reach a decision.
A report advised the committee: “A Section 106 agreement is usually the preferred route.
“However, this must be weighed against the lack of progress in this matter, and the council’s desire to see the currently vacant site developed for housing.”
The factory, which made starter motors for the automotive industry, was demolished in August 2008.
It had closed its doors in 2005, with the loss of 81 staff.
The development originally consisted of two, three and four-bedroom houses, but seven people objected to the scheme, and more than 50 people voiced their concerns on traffic and parking issues at a public consultation in 2009.
Bellway Homes agreed to remove one house from the plans to provide parking spaces on nearby Egerton Road.
Delays to the works have been disappointing for local residents.
Coun Matthew Tomlinson, who represents the Golden Hill ward, said: “There was never any great opposition against the scheme so I think people are just keen to see it started now.
A spokesperson for Bellway Homes said: “We are still in discussions with the local authority.”