Possible sites for building small numbers of new homes in Sidmouth have been identified in a study on new housing across the East Devon district.

The Urban Capacity Study was commissioned to look into the potential for small housing development in or near town centres.

The Government currently requires 928 new homes to be built across East Devon every year, and the study concluded that a maximum of 766 of these could theoretically be built in town centre sites – with only 40 envisaged in Sidmouth.

The possible sites identified in Sidmouth were the grass area west of Fairmead Road (five homes), land at Alexandria Trading Estate (10 homes), land north of Peasland Road (15 homes) and a site at Sidmouth Health Centre (10 homes).

The report went before the district council's Strategic Planning Committee at the end of last month, and the councillors heard that most of the new housing required by the Government would have to be built on sites outside town centres – although, with the increase in home working, it's possible that some office space could be repurposed as residential developments.

The committee agreed that there would be a need to find 'substantial' land outside the built-up boundaries of the district's eight main towns (Sidmouth, Ottery St Mary, Exmouth, Honiton, Axminster, Seaton, Budleigh Salterton and Cranbrook) to meet the district's future development needs.

Ed Freeman, service lead for planning strategy and development management, said: "It would be ideal to meet the needs from brownfield sites but sadly it is not going to be anywhere near possible based on our assessment. We have looked at what is physically and practically possible but not the willingness of landowners and details of layout of sites."

Cllr Olly Davey said that it was a salutary reminder that cannot rely on going inside the built-up boundary to meet the housing needs, adding: "This is 766 in total, not per year, as if it was, we wouldn't have a problem.

"People want to see towns developed before open countryside is, but we have to recognise that may not satisfy all our future housing needs."

Mr Freeman told the meeting that inclusion within this final list of sites should not be considered a substitute for planning permission and the study makes no judgement on whether permission would be granted, adding that it was likely that some sites included will not be appropriate for development as a result of detailed factors not assessed though the remit of the study.