Plans for 52 homes, including 26 affordable ones, have been rejected.

The Vale of White Horse District Council said the proposed development at Milton Heights, near Didcot, would contravene planning policies to restrict large developments in open countryside outside villages. The council also said there was already enough social housing in the area.

But the parish council, the Home Farm Trust charity and the vice president of the National Association of Estate Agents condemned the decision.

London businessman Anton Nik-Khah owns the 4.2-acre site of overgrown land next to the Home Farm Trust headquarters, Milton United football club's ground and the village primary school.

In 1990, a plan for residential and recreational use including indoor tennis courts, shops and social housing was rejected.

An appeal was lodged but the inquiry Inspector ruled that the social housing element was insufficient reason to override planning policy.

The planning application was rejected overwhelmingly by 15 votes with one abstention at the district council's development control committee.

Planning officer Martin Deans said there was already a significant amount of social housing in the area which was difficult to fill because of lack of facilities and the need to travel.

But Milton Parish Council chairman George Strange said properties were expensive in the village and there was a need for more affordable homes.

William Peck, of the Home Farm Trust which helps people with learning disabilities, said more affordable homes were needed for residents and staff. The Sovereign Housing Association also supported the application.

Conservative district councillor Terry Cox said: "Although there appears to be local support it is a significant application that should be put to the test through the Local Plan process and not the normal planning committee.

"If we allowed this, I believe we would open ourselves to real problems in other parts of the Vale."

After the meeting Mr Lilly, vice president of the National Association of Estate Agents, said: "There is an urgent need for more housing and in particular affordable homes. The council have been handed homes on a plate and have rejected them."