Berkeley has said a decision by a council in Hemel Hempstead to block plans to turn a former gasworks into nearly 500 homes shows what the government is “up against at local level” in its effort to overhaul the country’s planning system.

Dacorum Borough Council yesterday refused an application to build 476 private and affordable homes on the derelict Hemel Hempstead Gasworks.

Berkeley said the site has been largely empty for over 60 years and has been allocated for housing development in the council’s local plan since 2013.

How the rejected scheme would have looked

But the scheme designed by AHR was turned down despite a recommendation to approve the plan from the council’s planning department.

Berkeley added: “Dacorum has a severe housing shortage and delivered an average of around 680 homes over the last three years against an annual target of over 1,000.”

It said it plans to appeal the decision to the Planning Inspectorate “in a process that will take many months and incur significant costs”.

The housebuilder’s chief executive Rob Perrins added: “The government has made a hugely positive start to fixing our dysfunctional planning system and decisions like this shows what they are up against at local level.

“Councils with severe housing shortages can block new homes on sustainable brownfield sites they have allocated for housing in their own local plans. It makes no sense and we encourage the government to keep up the pressure and continue doing everything it can to break down the barriers and get homes built.”

Berkeley said it had been working with the council for three years on the scheme which would have also included parkland, children’s play space and a mix of new natural habitats.

Others working on the plan include landscape architect LDA Design and structural and services engineer Patrick Parsons.

Dacorum council has been contacted for comment.