The Government has backed Oxford City Council planners after they refused permission for a housing development because it did not include enough "affordable" housing.

Last year, Berkeley Homes launched an appeal against the council after it turned down plans for a 150-home development on the former Oxford Automotive Components factory site, in north Oxford.

A public inquiry was held in October to consider the company's appeal against the council's decision that it could not develop the Woodstock Road site.

Yesterday the council said the planning inspector had upheld its decision to refuse planning permission.

Berkeley Homes has already built and sold 121 homes at the development, known as Waterways, on the west side of the canal, after the council granted planning permission.

But councillors were not prepared to give permission for the 150-home scheme on the east side of the canal because of the lack of affordable housing.

Executive board member for planning, Cllr John Goddard, said the council had a policy of increasing the amount of affordable housing -- rented homes, or accommodation run by housing associations.

He added that the planning department was even more determined to use its powers to maximise affordable housing in Oxford, following the ruling.

He said: "I'm delighted that the inspector agreed with the council that the plans did not provide enough affordable housing to justify the development. Although the inspector did not accept the council's request for 48 per cent of the development to be affordable housing without further evidence, he did agree that Berkeley Homes' offer of 30 per cent was simply not enough to justify the release of this crucial site.

"Berkeley Homes even conceded at the inquiry that 48 per cent affordable housing would be physically and financially achievable without grant aid.

"I now hope they will revise their plans and agree to increase the provision for affordable housing."

The planning inspector said that that there were already 900 more open market homes built in Oxford than were required in the Local Plan, while there was "a demonstrable lack of affordable housing".

No-one from Berkeley Homes was available for comment.