A major row is looming after Newent was told to expand because housing schemes for other Forest towns have hit a brick wall.

In a shock report, Government Inspector Christine Newmarch says major housing developments such as the Northern Quarter project at Cinderford and the MMC estate in Lydney have no realistic prospect of being built in the next five years.

And in a decision which some fear will lead to an open season for developers, she has allowed Gloucester Land Company Ltd to build on green fields in Newent to help make up the shortfall.

The decision has upset many in Newent who believe the town's green fields are being targeted because they are easier and more profitable to develop than more industrial areas of the Forest.

Chairman of Newent Civic Society Keith Urch wants the district council to consider a judicial review and believes it could be a sign of things to come when the Government relaxes the planning regulations.

"I am disappointed and puzzled that the inspector has granted permission for land outside the development area," he said.

"It would appear that the developers have chosen the most easy, financially viable option because of problems building elsewhere in the Forest.

"Does this mean developers can develop any piece of land anywhere? I have very grave concerns and I am sure organisations such as Civic Voice and the CPRE will be interested in this decision because it does seem to have opened a door."

GLC argued that it should be allowed to build the estate of 120 homes on green fields off Foley Road in Newent because the district was being unrealistic about where the 2,189 new homes needed for the Dean over the next five years would come from.

Their experts called into question the viability of 23 sites that the council claimed would deliver 839 of the new homes.

After examining each one in detail at a public inquiry in October, the inspector agreed that 11 of the 23 projects faced such an uphill struggle that only 363 of the new homes – less than half – were likely to be built within the timescale.

Even with the third new estate in Newent, the Dean would still be hundreds of homes short.

The inspector dismissed objections that it would ruin the Newent countryside and strain infrastructure and services.

"The proposal would bring with it the benefits of boosting the housing supply, and the provision of affordable housing," she said.