Plans to demolish a school and build a controversial housing estate have been given the go-ahead after a High Court decision, writes Mark Templeton.

Oxford City Council appealed against a planning inspector's ruling that Sandhills Primary School in Headington should be demolished and 64 homes built in its place.

The planning application by Oxfordshire County Council included a new 2.6m school on a nearby field paid with money from the housing development. But a High Court judge refused to overturn the inspector's decision, signalling the go-ahead for the scheme. Some residents living nearby were furious and said the large-scale housing development should not be built there.

Veronica Kelly, of the Save Our Sandhills group, said: "The county council originally said it needed only enough money from this development to build a new school.

"But now it stands to make 2-3m out of this deal as well as getting a new building.

"The scheme is far too large for this area and we think the county council has been very underhand about the whole project." City councillor Jock Coats said the development was worth 7.5m, but he hoped the county council would listen to public opinion and now reduce the number of homes. He said: "If the council wanted enough money to build the school then it would need to build only 25 homes to pay for it.

"It will now be under pressure to stick to its word and submit a smaller plan, then all sides would be happy."

The school, which was built in the 1930s, is largely made of wood and staff have complained for years about the crumbling building. Oxfordshire County Council and developer Minns Estates faced massive opposition when plans were first submitted three years ago.

More than 1,100 people signed a petition opposing the scheme, which has already been refused twice.

Oxford City Council refused the application and said it was unhappy at the lack of social housing and the levels of traffic the scheme would generate.

A further public inquiry was to be heard in October but has now been shelved.