TOUGH new housing rules could cost a developer hundreds of thousands of pounds, according to Stroud Town Council.

Richard Thompson of Thompson First all but had permission to build 24 houses in Bowbridge last year on the site of the Citroen garage but failed to finish on an agreement with the district council.

He now looks set to lose out because of the new affordable housing rules. In the past developers were not obliged to provide affordable housing unless they to built 25 or more homes on the same site.

But new planning guidelines introduced by Stroud District Council to address the need for more cheap property have changed the limit to 15 homes and also increased the number they must provide once they threshold is reached.

The Bowbridge plans came before Stroud Town Council at its September meeting to discuss planning applications.

Cllr Andy Read said the application would not get the green light from the district unless the affordable homes were written into the plans and that was likely to leave the developer hundreds of thousands of pounds out of pocket as he would need to put seven or eight on the site to meet the requirements.

The town council, which only plays an advisory role in planning, objected to the development.

But district council planning officer Daryl Rogers confirmed there was no way the current application would get the go ahead under current policy. "We had an application in 2003 for 24 dwellings on the site," he said.

"At that time our affordable housing policy came into effect at 25 units or above. "The application was resolved not to refuse pending the completion of a legal agreement requiring contributions towards education and play facilities.

"That agreement was never completed because they failed to provide contributions. "In the meantime our affordable housing policy has been amended so they would be expected to provide seven or eight affordable homes."

A spokesman for Thomspon First declined to comment before he had received official notification of the objections.