Battle lines are being drawn by the developer of the former Spitalcroft allotment site in Devizes and Wiltshire Council.

The developer, Crest Nicholson, is appealing against the refusal of the council’s eastern area planning committee for it to downsize 20 homes and to build an extra 20 homes.

Crest has already built 80 homes at the site, off London Road, since being granted planning permission by Kennet District Council for 158 houses in 2006.

It submitted revised plans in June to substitute mainly four and five bedroom houses with three bedroom houses due to the housing slump. Half of the 158 homes have to be affordable homes but Crest argued that the extra 20 homes it wants to build should all be privately owned rather than half being affordable so it can make a profit.

It said that if it had to build ten affordable homes if would make a loss of £552,668 but if all 20 were privately owned it would make a profit of £354,512.

Eleven objections were made against the revised plan including from Devizes Town Council and The Trust for Devizes. They were concerned that the extra homes would add to the traffic congestion in the town.

Wiltshire Council’s eastern area planning committee refused the plan unanimously at a meeting last month. Councillors were appalled at the layout for the proposed new houses which included blocks of parking spaces instead of private drives, smaller gardens and less space between houses.

The committee was recommended to agree to the revised plan by officers. Planning officer Mike Wilmott warned them that at planning appeals inspectors were considering the current economic situation and whether developments would generate a certain return.