A CONTROVERSIAL housing development in York faces even more delays after a decision over a proposed village green.

The Joseph Rowntree Foundation (JRF) wants to build 540 homes on an area of land west of Metcalfe Lane at Osbaldwick to create the new village of Derwenthorpe.

The JRF says it will help to solve York's chronic housing shortage.

But villagers in Osbaldwick are unhappy about the development, which was only given outline planning permission after a public inquiry.

The objectors - the Friends of Osbaldwick Meadows - say the development will lead to a loss of green space and an increase in traffic. They want the land designated as a nature reserve, and to that end have applied for the land to formally become a village green.

But the group has discovered, through a Freedom of Information request, that North Yorkshire County Council had been handling York's village green register on City of York Council's behalf for the past 11 years.

They withdrew their original application to have the land designated as a green and submitted a new one.

Yesterday a planning inspector said City of York Council must consider the new application rather than the old one - meaning the process must start again, which will delay the development further.

Don Spaven, of the Friends of Osbaldwick Meadows, said: "It's good news for us. We're pleased that our application will be considered under the current regulations.

"It will give us the opportunity to present our case in the best possible way.

"It is one of the few remaining greenfield locations in an area that is densely populated, and it is important that we protect it."

Nigel Ingram, a JRF director, said: "Although we are disappointed at this latest delay to the creation of these much-needed homes, we are heartened to hear that the village green inspector has made a recommendation that any subsequent inquiry is dealt with expeditiously'.

"As recognised by the planning inspector in the public inquiry in 2006 and the Secretary of State earlier this year, Derwentho-rpe has much to offer York in terms of high-quality family housing, which this city so desperately needs."

A City of York Council spokeswoman said it acknowledged the inspector's recommendation. She was unable to say how long the delay would be.