Nearly 3,000 homes have been proposed for the site at Broadclyst

Campaigners fighting the new towns say it raises the question of whether they are needed at all.

The plans are for 3,500 new dwellings at Sherford, on the outskirts of Plymouth in the South Hams, and 2,900 houses at Broadclyst, near Exeter.

The schemes have been bitterly opposed by people in nearby villages, but the public inquiry has now been told by developers they may have better locations to build on.

Near Plymouth that includes proposals for sites in Lee Mill, Woolwell, Boringdon and Newnham.

In Exeter, away from the original Broadclyst site, developers are suggesting Pinhoe instead.

Homes are earmarked for the area between the A38 and A379

The inquiry has now been deferred until the end of next month to fully examine the new areas.

Planners in the South Hams also want to see proper scrutiny of other options.

They argue that Plymouth itself could take many more new homes on brownfield sites, in line with government guidance.

They welcomed any review of the new town plans.

Lee Bray, of South Hams District Council, said: "We really do believe it is significant.

"We hope that, by taking this little bit of extra time at this point in the process, they will be able to resolve some of those thorny issues quite clearly and give us a clear way forward for the next 10 or 12 years."

Plans to build in Sherford have provoked strong local opposition

Local campaigners have fought both new town plans from the outset.

In the Sherford Valley they argue the �1bn it would cost to build there should go to Plymouth instead which desperately needs the investment.

With the backing of local planners and the inquiry being deferred, they are now more hopeful that things may not be set in stone.

Paddy Ryder, from South Hams Against Rural Destruction, said: "South Hams now appear to be appreciating the problems of going the way they were trying to go.

"One hopes their slight change in tack will now become a total change in course and they'll get back onto a line to become what people in the South Hams want - opposed to what somebody else outside the South Hams wants."