Homes for Heroes plan scrapped in favour of community park project

But Highland councillors voted 10-4 in favour of the land being developed as a district centre which was backed by local residents.

A spokesman for Tulloch Homes said later: "We're extremely disappointed for the sake of the disabled service men and women who will be kept waiting for the home they and their families so richly deserve.

"Homes for Heroes key people had visited the site and felt it was ideal because of proximity to shops, school and services."

He said the firm will study the reasons for the refusal with a view to considering an appeal.

The district centre, which will include a skate and cycle path, is planned by Inverness South Community Council which says there are few community facilities in the fast-growing city suburb.

It feared that if both plans were given the go ahead the park scheme would be stopped in its tracks.

The community council said it was not against Homes for Heroes but consider the site the wrong location and that the proposed houses could be built within the surrounding residential areas.

Meanwhile, plans to build a holiday eco-lodge in the Highlands were approved by councillors despite an objection from a millionaire landowner.

The development at Dundonnell in Wester Ross is proposed by Becky Thomson, a director of the firm Escape Lodge Ltd, who is also offering visitors the chance to hand-build traditional houses using ancients kills like dry-stane dykeing and thatching.

Highland Council's Ross, Skye and Lochaber planning applications committee backed the plan which was recommended for approval by officials.

The application received 28 letter of support but also 27 objections. Among the objectors was Gordon Crawford who owns the Eilean Darach estate nearby.