Poundbury residents had said the flats were "poorly designed"

Developer Woodpecker Properties appealed against two sets of rejected plans for the flats at Jubilee Court in Poundbury, Dorset.

Residents had argued that the flats were "cramped" and "poorly designed".

The planning inspector, who heard evidence in September, has dismissed appeals for both sets of plans.

It has been a David and Goliath scenario... we have been ignored from day one Villager David Dawkins

The first scheme for 31 flats, two retail shops and parking was first rejected by West Dorset District Council's planning committee in August last year.

A second set of plans for 26 flats, two retail shops, four office units and parking was also rejected by the planning committee in May 2005.

A spokeswoman for the Planning Inspectorate confirmed on Thursday that "both appeals have been rejected".

David Dawkins, who lives in a �250,000 four-bedroom house next to the proposed site, spoke on behalf of residents who had opposed the scheme.

"We are absolutely overjoyed. It's fabulous news," said Mr Dawkins, a transport planner for Dorset County Council.

"We didn't think this was going to happen because of who we were dealing with.

"It has been a David and Goliath scenario. We have been ignored from day one."