And the Planning Department stood by its open space zoning of the land in the 1992 Bermuda Plan stating that enough land has already been designated for housing.

But landowners the Richardson Trust, an Anglican Church organisation, believe the Planning Department's zoning is "grossly unfair.'' The Trust was represented at the objections tribunal into the Bermuda Plan by lawyer Ms Clare Hatcher and architect Mr. Sjur Lindberg.

The site contains a farm house and a number of cultivated arable fields in a woodland setting.

While the Planning Department had zoned the area a variety of woodland, open space and agricultural land, the Trust asked for parts to become residential and rural.

In a report to the tribunal, the Planning Department stated: "While the department would not object to the change of zoning from open space to rural, it is opposed to a high density development zoning on the site.

"The primary aims of the plan are to conserve open space, to promote a high quality environment and to provide sufficient development potential to meet the community's housing needs.

"More than sufficient land has been designated to meeting development needs for the foreseeable future so that the release of additional land for speculative development cannot by justified during the plan period.

"Development on this hillside would have a substantial visual impact and detract from the rural character of the area.'' Ms Hatcher said the Richmond Trust had owned the site since 1867 when it was formed, but it had never developed the land.

She said: "The Trust is saying that this land has some development potential and it wants to develop under 15 percent of the property.

Development should not just be prohibited because the land has a rural character.'' Although the Trust could potentially build 60 houses on the land under a residential zoning, they were willing to enter into an agreement to build less than 30.

Ms Hatcher said: "This new zoning is grossly unfair and it would deprive the Trust.'' Architect Mr. Lindberg said: "This property is a textbook example of how we could achieve efficient land use without detriment to Bermuda.

"If we are to continue preserving the beauty of our Island then this is how we should build houses. This is a site that is completely subdued.'' Tribunal member Mr. Peter Smith said the development of the site was probably 10 years ahead of what it should be.

But Mr. Lindberg said the Trust simply wanted to secure the site so it could be developed when market forces allowed it.

Senior Planner Mr. Peter Adwick said: "All the statistics that we have show that there is a tremendous amount of development potential which would negate the development of this site particularly in the life of the current plan.

"It is a site of some environmental sensitivity and we have in the short term sought to protect these areas until there is a need to develop them.''