AN inquiry into the Forest's largest proposed housing development was abruptly adjourned after the inspector questioned a deal on affordable housing, and the viability of the entire scheme.

Developer, Robert Hitchins Ltd's proposal for 750 homes at Lydney East was rejected by an earlier inquiry, backed by the Secretary of State, because of "inadequate" offers towards social housing, schools, highways and leisure facilities.

Hurried negotiations earlier this month between Hitchins and The Forest of Dean District Council then clinched a deal taking the offer for social housing from 13 per cent to 30 per cent, rising to 40 per cent if grant funds were available from the government's Homes and Communities Agency. On the table there was also an offer to fund and build a new primary school.

But the details of the deal were questioned by Inspector Elizabeth Ord, who wanted answers on how the quota of affordable housing had been arrived at – given than national policy is for a 40 per cent starting point.

Martin Hillier, Principle Planning Officer for the Forest of Dean District Council, said: "The advice we've got from the district valuer meant we considered an offer of 30 per cent affordable housing was reasonable. But the inspector wanted to get behind the position of the council and the developers on levels of affordable housing and the appellants, Robert Hitchins, weren't happy with addressing those questions with the witnesses available. They said there wasn't enough time and asked for an adjournment."

Mr Hillier also said: "The inspector also questioned the viability of the development, with regard to commitments towards roads, archaeology, drainage, education, and whether the level of return for the developers can be achieved."

The situation is further confused because Robert Hitchins have started a high court challenge against the Secretary of State's rejection of their first appeal.

The adjourned inquiry will sit on April 27, 2010.