PLANS to redevelop an industrial site in the heart of Rowlands Castle have been refused.
East Hampshire District Council refused plans to build 40 homes at the Keyline Builders Merchants, off Redhill Road.
Planning officers at the council were unhappy as the application did not include affordable housing.
Developers Explore Living and Keyline Builders Merchants said the scheme was not viable if affordable housing was included, given the cost of acquiring the site.
Some residents had welcomed the proposals as it would have meant an end to noisy lorries trundling through the village every day.
But Councillor Marge Harvey, who represents Rowlands Castle, said new housing developments must include affordable homes as many young people in the village cannot get on the property ladder.
Other reasons for refusal included the plans failing to consider wildlife impact and no financial contribution to education facilities.