THE developer behind Winchester's Silver Hill scheme has suffered a serious legal blow.

TIAA Henderson Real Estate was refused leave to appeal a High Court decision which quashed its controversial changes to the £165 million development.

Henderson, which sparked a storm of protest last year when it dropped affordable housing and a bus station from the project, plans to take the case to an oral hearing.

It was forced to consider an older version of the scheme after the results of a judicial review, which ruled that revised plans were unlawfully kept from commercial tender.

The Court of Appeal ruled that none of Henderson’s three grounds for appeal “have a real prospect of success”.

January's judicial review against Winchester City Council, which took the unlawful decision, came after a challenge from rebel Tory councillor Kim Gottlieb.

He said on Friday: "Given the weakness of Henderson's case and the comprehensive nature of the judgment issued by Mrs Justice Lang on February 11, we're not surprised at the ruling.

“Unfortunately, it is not the end of the story because Henderson is now looking to revive the previous scheme consented in 2009. This is the same scheme Henderson spent the whole of 2014 saying wasn't financially viable.

“The council could end its contractual relationship with Henderson in just 5 weeks' time and offer the development opportunity to the open market for the first time. But, instead, the Council is acting as if the Judicial Review had never occurred”

Martin Perry, Henderson’s development director, said: “We can confirm that our permission to appeal the judicial review decision has not been granted from our paper application, however we will now be exercising our right for an oral hearing.

“We remain committed to the development of the site which we believe is in the long term economic interest for Winchester.

“We will continue to listen to all stakeholders and welcome constructive feedback which might improve the scheme and bring forward this much needed regeneration of the Silver Hill area.”