Planners reversed a decision to halt the conversion of a three-bedroom house into flats, as they feared developers could be awarded costs if they appealed to the Government.

Proposals to turn 2 Nicholas Avenue, Marston, into four one-bedroom flats were refused planning permission by Oxford City Council's north east area committee on March 25.

They were concerned about the character and appearance of the flats, traffic implications and the loss of a family dwelling.

Yesterday, area planning officer, Paul Semple, told the committee the council could be forced to pay costs if the applicant appealed successfully against the decision.

He said: "We would have great difficulty defending your decision on appeal, and feel if appeal was allowed there would be a case for costs."

Nils Bartleet, of Old Marston Parish Council, said: "We were originally concerned about this change of use.

"Conversions of family houses creates accommodation for people who stay a short time and bring little to the community."

But committee chairman, Maureen Christian, said: "Young people can no longer afford family houses and we have to provide some flats."

Her comments come days after the Oxford Mail revealed how 90 per cent of single people and 56 per cent of couples aged under 40 in Oxfordshire could not afford to buy a home.

Roy Darke, Marston representative, said: "I originally voted for refusal of this for the reasons given by Mr Bartleet, but I think we are caught with current policy."