The director of a development company warned he would take legal action if he failed to win permission to build on land near a nature reserve.

Jim Murphy, a director of Whitgift Homes, was speaking at a public inquiry at Brighton town hall into plans to build 35 homes off Wilson Avenue, Whitehawk.

The proposed development was rejected by Brighton and Hove Council's planning committee in July last year and the company appealed against the decision.

The company said the 1.8 acre council-owned site was advertised for sale as land for housing.

But the council rejected the company's plans because of its policy to protect wildlife.

Mr Murphy said: "If the appeal is not won we will be suing the council for misrepresentation."

The company said the proposed development, which includes 45 parking spaces, would help meet the city's urgent housing needs.

It also pledged to move wildlife, including slow worms and lizards.

The council said the proposed development would severely damage the site, which had been identified as being important for nature conservation several years ago.

An ecological survey by local naturalists discovered three species of protected reptile and breeding birds. The council was now proposing to designate the land as a Site of Nature Conservation Importance.

David Fenton, the Department of Environment inspector, heard pleas from local residents to reject the development.

More than 30 people turned up to object to the scheme, including representatives from the Friends of Whitehawk Hill, Sussex Botanical Recording Society and allotment holders.

The campaigners feared the development could lead to more homes being built in the area which would have an adverse affect on residents' quality of life as well as wildlife.

They claimed the wildlife should be protected as a priority before the commercial interests of the development company.

Dave Bangs, secretary of the Friends of Whitehawk Hill, said the site was a genuine refuge for wildlife. He said: "People can enjoy nature here. They can look over their garden walls and see foxes and badgers playing."

Ernest Bysh, speaking on behalf of residents of Swanborough Drive, recalled how the area had been gradually taken over by housing since he moved in 38 years ago.

He said: "People have got to live somewhere but so has wildlife. We have foxes and badgers coming through our gardens every night. As residents we feel very strongly about this development. "

The inquiry heard the development company intended some or all the homes to be built for housing associations to provide low-cost housing. But some of the houses might be sold for families in a middle-income range for about £150,000.

After hearing from both sides, the inspector visited the site. He will announce his decision at a later date.