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buying a house, discovered planning app to develop next to it, price reduction?

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  • buying a house, discovered planning app to develop next to it, price reduction?

    I am hoping someone can offer me some advice on my situation.
    I am a 1st time buyer about to purchase an end of terrace house. Just as I have my mortgage sorted and was about to start paying solicitors search fees etc I was told that some planning has been put in to the council to build on a disused concrete area to the side of the house I'm buying. The planning is for 7 large houses.
    This has come as quite a shock to me, the plot of land is really quite small and the plans show the new houses being built right up to my house with little or no space between them.
    I was told to get an objection letter wrote up and sent to the council which I have done today outlining all the issues like over-looking, parking, transport etc, I've also had to include a section about how my house is rendered and currently needs a lot of maintenance to include all new render on the outside, I need access to the outside walls for this with scaffolding and workmen space, it also needs damp proofing done and alsorts, which I can't do with a house 5cm's away from me.
    I have been told that I should negotiate the price of the house again now due to this building application because even if this one is turned down a new one will be submitted until something is accepted. The estate agents aren't being very helpful with regards to how this affects the value, which is expected.
    Is it in the sellers interest to keep me on side rather than have to put the house back on the market if I drop out? Every person that decides to buy the house will be informed of the building work next to it so could be put off, or at least that is my thinking.
    I'm unsure what to do now. Living next to a building site REALLY isn't something I fancy going through again (its happened to 3 of my rental houses over the years) but this size house doesn't normally come up in my price range and I do really like/want it for many many reasons. What should I do?
    Thank-you in advance.