DEVELOPER Millwood Homes says it may appeal against South Hams Council's decision to throw out its West Dart plans.

The council has refused planning permission for 240 homes and employment units after an independent viability study found that the proposed 15 per cent affordable housing provision was unacceptably low.

The officer-delegated decision was announced on the council's website last Friday and follows months of speculation about the project.

Afterwards Millwood's planning officer Mike Smith the company was considering its options, but had not ruled out the possibility of an appeal.

'There are number of options we need to look at,' he said.

'But it is a possibility that we will be appealing against the decision.'

Millwood has always maintained it has struggled to come up with an affordable homes package that the community would find acceptable.

The controversial application for 240 homes on land next to Townstal Road has been on the cards for more than two years and there have been numerous consultation exercises with the community.

An outline application was submitted by Millwood Homes last summer.

The mixed-use development includes up to 2.7 hectares of employment land, a local centre, formal and informal open space and play areas, landscaping, cycle path and footpath links and associated infrastructure, all served off new primary and secondary access at Townstal Road.

Dartmouth Town Council is anxious the development includes as many affordable homes as possible for the town's young people who say they are being forced to move out of the area because of sky-high property prices.

A spokesman for South Hams Council said it had refused permission for the scheme because there were too few affordable homes.

He said: 'The council's independent viability assessment considers that 15 per cent affordable housing provision is insufficient and that a significantly higher level of provision could be achieved if the applicant's assumed land value for the site was lowered.

'For this reason the application is considered to be unacceptable and contrary to Local Development Frame­work Core Strategy Policy CS6, Affordable Housing DPD Policies AH1 and AH2 and guidance within the Affordable Housing SPD.'