Cala Homes had submitted outline plans for a residential development, including affordable homes, at Conglass on the outskirts of the town.

The proposal would have added a second phase to the housebuilder’s previous development, The Grove at Inverurie.

The masterplan had been recommended for approval when it went before Aberdeenshire Council’s Garioch Area Committee last week. However, following an almost two-hour debate, members of the committee voted against the application by nine votes to five.

Concerns raised included over-development of the site and fears the new homes would overlook existing properties.

A spokeswoman for Cala said the homebuilder was “naturally disappointed” that its plan was not supported.

They added: “We will be reviewing the points raised with a view to progressing at a later date.

“We worked closely with the council and local community to make sure our plans were suited to the needs of the area, while delivering much-needed affordable and private homes.”