English Partnerships is at loggerheads with a council over affordable housing that it is developing in Cambridgeshire.
South Cambridgeshire council says that half of the 8000 homes being developed in the town of Northstowe should be affordable.
EP, which is developing Northstowe in a joint venture with Gallagher Estates, argues that the proportion should be capped at 35%.
The government is consulting on proposals to make EP part of an agency that would be responsible for funding affordable housing provision.
The issue is due to be on the agenda at the inquiry into South Cambridgeshire’s local development framework.
An EP-Gallagher spokesperson said: “With the delivery of a new town there are inevitably high infrastructure costs and a higher standard of development, all of which has to be recognised. In addition, 35% affordable housing creates a more balanced community than 50%.”
Gallagher has submitted a planning application for the site, including the former RAF barracks at Oakington bought by EP to kickstart the scheme.