A £50million scheme to build 200 homes on the former Cwrt-y-Gollen army camp has been refused by the Welsh Government.

Crickhowell Estates which owns the site, lodged a formal appeal against Brecon Beacons National Park authority's refusal of the planning application last year and in February this year a planning inquiry, lasting two weeks, was held to investigate the company's proposals for outline planning permission, which included affordable housing, a nursing home, a children's nursery and a series of industrial units.

In his report the Welsh Government's inspector Alwyn Nixon looked at every angle associated with the proposed development and said that he considered that the landscape and visual impact of the proposed development would significantly detract from the natural beauty of the National Park.

He added: "I conclude that to permit the development would be contrary to the statutory purpose of conserving and enhancing the natural beauty and cultural heritage of the park."

As the proposed development included more than 150 homes, Welsh Government ministers had the final say and they agreed with the inspector's conclusions and dismissed the appeal last week.

The inspector noted in his 80-page report that the residential element of the proposed development would be about 2.5km from the shops and local services provided in Crickhowell, representing a typical walking time of around 30 minutes each way.

He said that although the development was fairly well located, in overall rural accessibility terms, to centres which provide day-to-day facilities and services he considered that the great majority of residents would not walk to and from Crickhowell in order to make use of local facilities on a frequent basis.

"Similarly, the existing two-hourly bus service between Crickhowell and Abergavenny seems to me insufficiently frequent to cater adequately for the needs of most residents," said Mr Nixon.

"The provision of the cycle path and travel plan would undoubtedly assist in encouraging a reduction in car trip numbers, although it is not known how large a reduction this would be."

Mr Nixon pointed out that there were a number of factors which need to be considered alongside the site's status as previously developed land.

"The site lies within open countryside which is of high scenic quality and, moreover it lies within the National Park. Even though it has until the recent past had institutional buildings on a significant part, and some of those buildings and other development remnants are still present, it remains necessary to consider matters such as the impact of the development on the character and appearance of the area and that the scale and type of development now promoted on the basis that the site is previously developed land needs particularly careful scrutiny."

It was the size of the development that concerned the inspector, adding: "The scale of some 200 units would be by far the largest provision of housing on any single site within the Park and I consider that this level of housing at Glangrwyney would be wholly inconsistent with a balanced spatial approach to housing provision, even if the houses would be phased over an eight year period, does not alter my concerns in this regard."

But the inspector did find a number of positive features being proposed in the scheme and added: "I do not doubt the intention to deliver a layout and buildings of high quality design, incorporating energy efficiency and sustainable drainage principles and the like, including a biomass energy plant to provide heating for the whole development."

The inspector pointed out that he was concerned over the sustainability of the site's status as previously developed land being used as residential development and its implications for the natural beauty and cultural heritage of the National Park.

"In overall terms the proposal fails to represent a sustainable form of development. I recognise that there would be other benefits associated with the proposal and there would clearly be considerable economic benefits associated with the investment in construction and employment opportunities arising from elements of the development. "

"There would also be a public benefit arising from new public access to the parkland area, the improved setting of the standing stone scheduled ancient monument and the public art installation. However, these matters do not, either individually or cumulatively, outweigh my findings on the main issues."

Mr Nixon concluded, "I recommend that the appeal be dismissed as the size and location of the proposed development and its consequent effects upon the special qualities of the Park represent a fundamental objection to the scheme.

"Not withstanding the various benefits identified above, material considerations do not exist in this case which indicate a determination otherwise than in accordance with the development plan."

A Crickhowell Estates spokeswoman said, "We are of course very disappointed with the decision by the minister. We remain of the belief that the proposed development provides the most appropriate response for this brownfield site and would relate to and benefit the entire community of the Vale of Grwynwy and Crickhowell.

"We will now review the position carefully and consider our options in full."

Powys County Councillor John Morris said, "This decision is certainly a victory for common sense. It's excellent news for the community who opposed the scheme by presenting sound arguments at the planning inquiry, especially those serving on the Vale of Grwyney community Council.

"I shall be asking questions of the Park's authority how the officers who recommended the scheme got it so totally wrong on so many accounts.

"The inspector raised a lot of issues and he seems to agree with majority of the community, that the site is suitable for a small development of between 20 to 50 dwellings, which is more in keeping with its surroundings but still maintains its atmosphere of a village.

"The inspector pointed out that the neighbouring Dan-y-Gollen estate sticks out prominently in the countryside and that the Cwrt-y-Gollen site is not even in the Park's authority development plan.

"It was a very emotional inquiry and I feel the inspector has evaluated all the arguments and made his decision, which is definitely a common sense victory for everybody who lives in this area."