The alarm was sounded when Jelson Homes won its appeal to build 65 new houses off Loughborough Road, Asfordby, despite the fact the homes will fall in open countryside.

Planning inspector John Gray ruled that the borough does not have enough land allocated for housing for the next five years, so the Government's push for more homes took precedence over local planning policy.

Joe Orson, deputy leader, asked the annual meeting of the council to back moves for a judicial review.

He said: "For one person to arrive in Melton and drive a coach and horses through our planning policy is simply crazy. It's a bad decision and sets a dangerous precendent.

"The consultation over this application was faultless, we received a petition opposing the development and there was a packed public meeting which came out almost universally against it. The application was turned down on strong policy grounds."

Mark Barnes, chairman of the development committee, added: "We have to stand up for our rural areas and for our right to decide where new developments go."

And Labour councillor Matthew O'Callaghan said: "Thanks to this decision anarchy now prevails and developers eyeing up Melton could now start lodging speculative applications and have them determined by a planning inspector. Seeking a judicial review will be difficult and costly but we need to look into this because of the wider implications."

A motion authorising officers to seek legal advice from counsel and then to report back to a special meeting of the council was passed unanimously.

Asfordby Parish Council, who had strongly opposed the Jelson application and appeal, will be asked to lend its support.