The proposals would have delivered 38 new homes as an extension of the existing development on land south of Linlathen Grove.

A planning application was refused by Dundee City Council’s planning committee in August, prompting the developer to submit an appeal to the Scottish Government.

Having now been officially dismissed by the Scottish Government, Kirkwood Homes said the decision on the appeal is the latest in a series of housing developments blocked under the stringent National Planning Framework 4 (NPF4) which critics insist is discouraging investment in the sector.

For the developer, the strict application of the planning policy is severely hindering housing delivery across the country, further limiting Scotland’s ability to meet its urgent housebuilding targets in the midst of a housing crisis.

The refusal also halts the introduction of a proposed new bus service that would have connected the site directly to Dundee city centre and Ninewells Hospital. The bus service was developed in close collaboration with Dundee City Council, which provided the locations for the bus stops, and Stagecoach, which would have delivered the service.

Commenting on the decision, Allan Rae, land director at Kirkwood Homes, said: “We are deeply disappointed by the Scottish Government’s decision to dismiss our appeal for the extension of the Balgillo Heights development on Linlathen Grove, Broughty Ferry. The project would have delivered a further 38 high-quality homes, addressing a clear need for housing in an area where demand remains high.

“This decision is yet another example of how NPF4 is being used to restrict housing delivery during a nationwide housing crisis, with policies open to negative interpretations that justify refusals. As a result, NPF4, along with outdated Local Development Plans (LDPs), is significantly hindering efforts to address the housing emergency and meet both local and national housebuilding targets.

“Our application demonstrated that the site was well-connected, with essential services, including two supermarkets and a primary school - within a 20-minute walk. The development also proposed a vital sustainable transport solution through a new bus service linking the site to Dundee city centre and Ninewells Hospital. We had worked closely with the council to identify bus stop locations and partnered with Stagecoach to fund the service for three years. However, with this refusal, that bus service will no longer proceed.

“Ultimately, it is a squandered opportunity to deliver significant investment for the benefit of the community in Linlathen and we are currently reviewing our next steps for the site.”