A bid to build 170 homes on farmland on the edge of Holt has been refused planning permission after a failed appeal.

Cheshire-based Gladman Developments applied on two separate occasions to North Norfolk District Council - in October last year and the following February - to build new homes on land south of Lodge Close in Holt.

The council's development committee refused the applications because the site was outside Holt's development boundary; would encroach into an area of open countryside; and create over-capacity issues at Holt Primary School.

Gladman's appeal against the first refusal has now been dismissed by the Planning Inspectorate following a four-day public hearing at the council's Cromer headquarters and site visits at the end of July.

The inspector turned down the appeal because there was enough land for new housing in north Norfolk for a five-year period and the reserved matters application would go against the policy of limiting countryside development.

Residents' concerns of over-capacity in the primary school, access, congestion, road safety, loss of agricultural land and wildlife habitat and the impact of development on the town's infrastructure were not enough grounds, for refusal on their own

Duncan Baker, Holt Town Council chairman, said: 'It is pleasing that common sense has prevailed. It was almost unanimous throughout the town that no-one wanted these houses.'

He added that building on the site, which borders Holt Country Park, would have damaged the area's rural character.

Up to 700 homes are expected to be built in Holt between 2001-2021 and outline permission has been granted for up to 85 homes off Woodfield Road, 215 off Hempstead Road and 153 off Grove Lane.

Mr Baker said infrastructure and school capacity issues in the town needed to be investigated.

Anita Phillips-Wright, 52, from Lodge Close, who objected to plans because of the loss of wildlife was 'delighted' about the decision and said: 'It would change everything.'

Paul Roberts, Gladman project manager, said the firm was going to review the appeal decision and decide on its next steps after that.