The plans, which were submitted to the council last September, would have seen an existing house on land next to Monikie Primary School demolished and seven bungalows built on the Rowanbank Cottage site, which borders the B961.

Director Bill Green said that the Craigton of Monikie development is needed and the firm has been astonished by the council’s decision.

He added: “It beggars belief. One of the points raised as part of their refusal was that there are enough houses in Angus already. Does the Scottish Government realise this? I thought that we were trying to build more houses all across the country – this does not appear to be the case in Angus.

“This refusal note also does not take into account any allowance for the overspill from Dundee – which is literally next door.”

In a decision notice published online, Angus Council stated that the “alleged housing shortfall” the applicant relies on in support of its case “does not exist”.

It added that there is no “wider public interest” in allowing the development, The Courier reports.

Dundee’s lack of quality housing has long been acknowledged, with the council there eager to encourage developments. However, the decision notice from Angus Council states there is expected to be a “surplus” of housing in south Angus once developments are complete in the next few years.

Monikie sits just four miles from the Dundee-Angus border.

Mr Green also claimed the planning department made an “error” when drawing up its development boundary for the Monikie settlement but will not review it for more than three years.

He said: “We were told that the site could not be entertained as the settlement boundary did not include the grass area of the site, only the house. We stated that this was clearly a mistake by whoever drew up the plans. We have now been advised that they have until the end of 2022 (to review the boundary).

“How can this be right? How can it possibly take over three years to review the settlement boundaries in Angus?”

He added: “There does not appear to be any commercial awareness within the planning department, if this is the case.

“If it takes over three years to review the boundaries of Angus it would appear that Angus is closed for development until then.”

An Angus Council spokesman said: “The individual concerned has the right of appeal if he is dissatisfied with the decision that was made, but we would also be happy if he wishes to contact us directly with any questions or concerns he may have.”