Building companies which took Oxford City Council to the High Court to change its policy on social housing have lost their case.
The companies objected to the council's adoption of tough government guidelines requiring developers to increase the proportion of social housing on new estates from 20 to 30 per cent.
J A Pye (Oxford) Ltd of Langford Locks, Kidlington, Bellway Homes, from Newcastle-Upon-Tyne, and the London-based House Builders Federation, received the judgement on Friday.
The legal challenge was seen as an important test case. Mr Justice Ouseley's decision could have far-reaching implications for developers and local authorities throughout the country.
The developers argued the guidelines drastically increased the burden of affordable social housing, and lowered the value of developments. They also claimed the council was not entitled to adopt the guidelines.
Justice Ousley said the new rate was reasonable, and gave permission for an appeal.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article