PROPOSALS for 20 new Worcester houses have been shelved because none of them are affordably priced.

The city council is celebrating after a Government inspector refused a scheme to build the homes in Goodrest Walk, off Rainbow Hill.

Developer Millbridge Homes had made an appeal to the Government after city planners refused to allow it.

The appeal was refused after inspector Robert Luck said there was "no justification" for at least some of the homes not being priced below market rates.

It comes at a time when new Prime Minister Gordon Brown has pledged to make the creation of affordable homes the centrepiece of his premiership.

The developer wanted to build six semi-detached and 14 detached houses on the site, but was refused in January by the city council.

Mr Luck said: "In failing to provide a level of affordable housing, the proposed development would have an adverse effect on the council's ongoing objective of meeting the identified need for affordable housing."

The project was given outline permission by the city council in November 2005, only for it to introduce a new policy the following October on affordable homes.

The policy said any developer building more than 11 homes must make 40 per cent of them affordable.

Consequently when the final permission came before the city council, it was rejected out of hand.

Paul O'Connor, head of planning at the city council, said: "This is excellent news, and shows that our provision on affordable housing is being supported.

"The Government inspector said there was no justification as to why affordable housing cannot be provided on this site, which is great news.

"We've now got this situation where we've got a new policy in place, and we've got justification for it."

An independent report last year said Worcester needs 300 affordable homes built each year to satisfy demand, but only 90 a year on average are currently being built in the city.

Following the refusal, Millbridge Homes confirmed that a new planning application was being submitted to the city council which would have proposals for affordable housing incorporated into it.

Gordon Brown used his opening speech as Labour leader a fortnight ago to say that he would make affordable housing one of his "great causes".