Residents of the Prince of Wales's model village were divided today over a Cabinet minister's suggestion that their homes were born of a royal ego trip.

Communities Secretary Hazel Blears likened Poundbury in Dorset to 19th century projects in which industrialists built new communities to house factory workers.

She cited Bournville in Birmingham, Saltaire in west Yorkshire and Port Sunlight in Merseyside and said they "owed more to paternalism and the aggrandisement of the benefactor than real concern for the residents. And you couldn't get a drink!"

She added: "If I were feeling cheeky, I might add Poundbury to the list."  Charles is proud of the urban extension to nearby Dorchester, built on Duchy of Cornwall land, and often invites high-profile guests from around the world to the village.

But residents have mixed feelings about Miss Blears's comments, made during yesterday's launch of the new Fabian Housing and Community Policy Network.

David Dawkins, transport planner for Dorset County Council, said: "It's not so much self-aggrandisement. I would say it's a lot more cynical.

“It's a money-making venture on a green belt site. This whole thing about sustainable housing is just hogwash."

Mr Dawkins, 44, added: "If developers can get planning permission to build high-density housing on a green belt or semi-rural location, then it's a licence to print money and that's what Poundbury is all about."

"If they can cite Poundbury as a precedent, that's very convenient. They can make a killing and that's what it's all about, in my humble view."

Mr Dawkins is selling his £395,000 four-bed, semi-detached house at Poundbury because of problems with school catchment areas for his two children, aged five and eight.

“The majority of luxury housing was aimed at wealthy people wanting to retire in Dorset and is unaffordable to locals", he said.

“This has created an unbalanced community and a "retired general syndrome" at Poundbury, typified by the Poundbury Residents' Association (PRA), he added.

Fran Leaper, chair of PRA, said: "It sounds like Hazel Blears having a little go at Prince Charles. It's not an ego trip. It is a vision of a lovely piece of architecture that will help foster community spirit. Plus, you can get a drink any time from 8am to whenever the pub closes." 

Mrs Leaper, 59, who is retired, added: "I believe he (Charles) had a totally sincere approach to helping develop Poundbury as an experimental model. It isn't totally perfect but it is extremely successful."

Other residents who have crossed swords with the Duchy over planning issues disagreed.

Former resident Mark Johnston, 39, sold his £298,000 three-bed, semi-detached house in Poundbury in January last year after his family's health suffered.

His wife miscarried amid village in-fighting over planning issues at Jubilee Court.  The teacher, who now lives in Dorchester with his wife and two sons, aged four and seven months, said: "The Duchy are not interested in anything the residents have got to say apart from the Poundbury Residents' Association, who are just happy to be on Prince Charles's estate.

"The social housing is the only places with people with families. Everyone else has been priced out."

He added: "I don't agree with a lot of what Hazel Blears says. She's a bit of a comedian at times, but I hate to say it, maybe she is right this time. I think it is a bit of an ego trip for Charles.”

"He wrote a book, Vision Of Britain. One of the rules is you have to consult residents about what you are building but, whenever we talked to the Duchy, it was just an attitude of 'This is what we are building - tough'.

"It's more about making money for the Duchy, it's not for Dorchester people, because nobody in Dorchester can afford it. He has created a dividing wall in Dorchester."

Another resident, who did not wish to be named, said about two-thirds of residents were "disillusioned" with Poundbury. "When he (Prince Charles) comes, people ignore it, nobody turns up," she said.

"I think the Dorchester people are fuming. They are very, very anti-Poundbury. When you give your address, you have to be very apologetic.

"They feel the whole thing is a cheat. They were fed this line about it being a small village, an experiment, and then they were sold down the river.

"The whole thing has escalated, riding roughshod over everything. Certainly they dislike the Duchy's tactics."