A development in Park End Street was thrown out by councillors after it was claimed too many developers were dodging social housing rules.

Cantay Investments Ltd had applied to build nine two-bedroom flats behind Cantay House in Park End Street.

Council policy dictates that schemes of 10 properties or more are required to make 50 per cent of units available as social housing.

City councillors “called in” the application to the planning review committee on the basis that the developers had “under developed the site in order to avoid making a contribution to affordable housing”.

In December it was approved by a council planning committee.

But on Wednesday the planning review committee threw the application out on the basis that it did not make a contribution to the city’s social housing shortage.

Committee chairman Colin Cook said: “Our planning policy is to get as much social housing as possible.

“This application was called in to stop developers unreasonably underdeveloping sites for their own financial benefit.”

City councillor Susanna Pressel said: “It is remarkable how many applications we have had in the past year for developments with nine units.

“It is probably not a coincidence and we have to stick firmly to our requirement.”

But city councillor Tony Brett disagreed, calling the reasons for reviewing the application “bogus”.

He said the committee should decide the application on its merits.

In the city council’s sites and housing plan a new policy states that developments of four to nine units would have to make a financial contribution towards affordable housing in the city.

This contribution would be of 15 per cent of the sale value of the units.

But Cantay Investments said that its Park End Street scheme would not be viable if it was to hand over this cash. On this basis it declined to make any “voluntary” contribution towards affordable housing.

The applicants declined to comment after the meeting except to add that it was “ expected”.

Cantay Investments already has planning permission to build 45 student flats at the site.