Plans to build 19 new houses on the site of a former old people's home have been rejected.
Oxfordshire County Council wanted to sell Cutteslowe Court in Wyatt Road, Oxford, for private housing.
But the city council launched an appeal against the scheme, saying 30 per cent of the homes built should be set aside for social housing.
A Government inspector ruled in the city's favour and said any development on the site should include social homes.
West ward city councillor Colin Cook said: "This is excellent news for the people of Oxford. It was outrageous that the county tried to put through plans without allowing for social housing."
The news comes just three weeks before a public inquiry is held into plans to redevelop another former old folk's home, Oseney Court in Botley Road. Three seperate planning applications have been submitted for student accommodation and nurses' quarters, but no social housing is included in the schemes.
County councillor John Power added: "The council should not be allowed to make a private killing out of public sector land and I hope this decision will bode well for Oseney Court when that goes to appeal in a few weeks."
Cutteslowe Court was controversially closed due to social services cuts in 1998 and was later occupied by squatters. They were moved on after being assured there would be social housing in the plans.
The city council last year gave permission for 31 flats at the Wyatt Road site with the proviso that at least 30 per cent of the units were made available for social housing.
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