Just a few weeks ago, the Evening Telegraph reported that the Planning Inspectorate had rejected an appeal by Hazelmere Homes against the city council's decision this summer to turn down outline planning permission to build the dwellings at The Pingle, in Northborough, near Peterborough.

But Hazelmere Homes chairman Michael Phillips said it would be mounting a legal challenge, and hoped to submit a new application by the end of the month.

However, villagers, who held meetings, organised protests and mounted a 493-name petition against the plans, say they are disappointed, because they believe the development would impact on wildlife and cause traffic problems.

But Mr Phillips said a full survey was carried out, and no wildlife issues emerged.

He also rebutted the view that children crossing the road in the area could be put in danger by the new development.

He said the council's highways department had undertaken an in-depth study, and concluded there were no road safety issues.

He said: "This development should be approved.

"There are no objections from any of the consultations, and it has the full support of the planning department.

"We were disappointed with the appeal decision, but we will now be making a legal challenge to that decision, and have written to the inspectorate asking for clarification on a number of points to ascertain whether or not we will be making a formal complaint."

"We are now working with our consultants and architects to prepare another appeal, together with a fresh application, and we hope we are able to submit the application before the end of this month."

Spokesman for Northborough Residents Association Steve Banner said he was "shocked and disappointed".

He said: "I would have thought Hazelmere Homes would have got the message by now that the development is not wanted.

"It has been rejected four times now.

"We are against it for a number of reasons, including environmental concerns, the draining of a lake, harm to wildlife and increased traffic congestion.

"There could be additional traffic funnelling past the local primary school, and it is an accident waiting to happen.

"We are talking about a development that is but a hop, skip and a jump from a conservation area."

The land concerned is also subject to a covenant dating back to 1986, stating that the site should not be developed, even though the city council has previously permitted the construction of a family house there.

Mr Banner said that campaigners were "vigorously against" the lifting of the covenant, and claimed it would be "a disgraceful betrayal of the villagers of Newborough".

He said: "We start from the principle that this land should not be developed, full stop, but we like to keep an open mind, and will look at any completely fresh application that Hazelmere Homes, or anyone else, wants to submit."