The leader of Teignbridge Council has said that plans to make half of the 1,700 new homes planned for the Kingsteignton 'urban village' affordable are still realistic, despite WBB MInerals' planning victory at Jetty Marsh.

After a public inquiry the company has been given permission to build 73 flats and 116 houses, despite only offering to make a third of them available either through a housing association or shared equity.

Teignbridge wanted at least 50 per cent but WBB argued that the cost of restoring the former clay mines was too high to make a larger percentage viable. Planning inspector Brian Sims agreed, describing the remediation costs as 'extraordinary'. He concluded: 'In this instance I am satisfied that... 30 per cent is acceptable in view of the evidence of viability.'

Much of the land earmarked for the 'urban village', or northern option as it is officially known, is also owned by WBB and in a similar condition to that at Jetty Marsh. But council leader Cllr Alan Connett has said he is confident of meeting the 50 per cent target central to the council's Local Development Framework 'core strategy'.

'The inspector only dealt with Jetty Marsh and we don't think there are implications for the Northern Option,' he said. 'Independent assessment of the northern option's viability has found that with the information we already have that 30 per cent is achievable as things are. 'Yes, we have identified a funding gap but are confident that talks with such bodies as the Housing Corporation will identify grants and allow us to achieve our aim of 50 per cent.'

Bob Williams, chief executive of WBB's development partner, Arnold White Estates, welcomed the inspectors' findings which also pave the way for the relocation of Newton Abbot rugby club to land off Old Exeter Road.

'We always said that we wanted to deliver a significant number of affordable homes at Jetty Marsh, the exact number of which would always be driven by the site's financial viability,' he said. 'It was Teignbridge Council that got hung up on percentages, something which has actually delayed the scheme by anything up to 18 months. The people who count, the people who need affordable homes, don't really care about percentages. 'What they want is a front door into which they can pop a key and get into their new home.'

The latest phase of public consultation on the northern option and other developments is due to start next month.