An historic north Norfolk public school has suffered a setback in its plans for the future after land it earmarked for money-generating housing was rejected by a planning inspector.

Gresham's School at Holt, which dates back to 1555 and now has 500 fee-paying pupils, wanted to put homes on a field between Norwich Road and the bypass which would have helped fund major improvements such as modernising an aging boarding house and pre-prep school.

But the site, which drew major traffic concerns from residents of nearby Grove Lane, has been thrown out by government inspector Paul Dobsen as the only major amendment to North Norfolk's Local Development Framework planning blueprint.

He said the 120-home Gresham's site was in a rural setting that was too far detached from the town centre, and would result in an 'anomalous outlying residential estate.'

Instead he has substituted it with an alternative off Woodfield Road, which was closer to the town and not in a sensitive landscape.

Gresham's School has said the use of its surplus land for housing would