A Conservative councillor has slammed a planning application submitted by Northumberland Estates saying it "puts profits before people".
The developer, which is the Duke of Northumberland's property developer, had applied for permission from Northumberland County Council to build 63 new homes on land south of Broomhouse Lane in Prudhoe.
Council officers had recommended the plans for approval, but local residents raised concerns about the impact the development would have on road safety. They were particularly concerned about Tilley Crescent, which would become one of two access routes for the estate.
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Speaking at Tuesday's meeting of the Tynedale Local Area Committee, Coun Gordon Stewart, who represents Prudhoe South, spoke against the application.
He said: "Many people have shown their disbelief, their concern and at the time real anger at this proposal. This application has caused them many a sleepless night as their fear for the future of their quiet, friendly estate.
"It would appear to more cost effective to use the route via Tilley, but monetary interest should not be above the safety and welfare of so many people.
"Some may feel an easy decision for the committee today - profits for the developer against the welfare and safety of so many people."
Speaking in defence of the plans, agent Alastair Willis of Lichfields argued: "The site has previously had planning permission, but due to the state of the market at the time following the recession it was never built.
"The applicant has made various changes including reducing the number of units and to the proposed elevations. The original consent had 118 dwellings.
"There have been no objections from Highways, Northumbrian Water, or the lead local flood authority."
Mr Willis also said other access routes had been considered, but they had been discounted as they made the design of the scheme "significantly worse" due to the topography of the site, which is on a steep slope.
Despite this, councillors voted to refuse the plans. Proposing refusal, Coun Nick Morphet said he was concerned about the amenity of residents on Tilley Crescent due to the increased traffic and the mix of homes.
Coun Morphet argued that there were too many four-bed homes which did not reflect the demand for two-bed dwellings.
The committee voted to reject the application by six votes to four, with one abstention. Following the refusal, Coun Colin Horncastle branded the reasons behind it "incredibly weak" and warned the council could face an appeal it would be unlikely to win.
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