A planned housing development in Wantage has suffered another setback, which developers say could scupper the scheme altogether.

Councillors have not yet decided whether to allow housebuilders Barratt to redevelop the site of Ben Smith & Sons' scrapyard in Mill Street, and build 169 flats and houses.

Barratt's agent, Bogdan Nedelkoff, of Wantage-based BHP Harwood Architects, said he was stunned when the Vale of White Horse District Council's development control committee deferred a decision again.

The scheme has already been revised and was delayed by a council error last year.

Planning officers had recommended approval, but councillors were not happy with the high number of homes planned on the 4.5-acre site, which borders Letcombe Brook.

Mr Nedelkoff said: "We further revised the scheme and reduced the number of units to 169 from 176 but some members feel we should do so yet again.

"Our view was and still is that affordability of homes is very important to Wantage. There's a real demand for small, one and two-bedroom flats.

"We were very surprised by the decision as we believe we have responded to Wantage's needs.

"Reducing the number of units means prices may be pushed up."

He added: "The more there is prevarication and delay, the more chance there is that this site will not be developed."

Barratt has the option to appeal to the Government because of the delay in making a decision.

But the council's head of planning, Roger Hood, said he was confident the project would go ahead.

He said councillors accepted the need for high-density housing on the site, but that there was still more work to be done before approval was given.