The DfE also wanted more proof the project team included people experienced in managing school budgets.
But it acknowledged the application had its strengths, “particularly in governance, vision for the school and integration and cohesion”.
A spokeswoman for the school team said it continued to believe “we had a very strong bid”.
In relation to places, Hertsmere Council had looked at availability in schools in the borough overall, rather than specific demand within the Jewish community, she explained.
“However, when looking at this through the lens of Jewish state-aided schools, we are aware, and have validated with both communal professionals and local councillors, that these schools are oversubscribed.
“We intend to discuss this matter at length with the DfE during our meeting to understand how they’ve measured the demand and to underline our concerns relating to places at the existing state-aided Jewish schools.”
There are three state-aided Jewish primaries currently in Hertfordshire, two Orthodox and one pluralist.
Supporters of the new school want to cater for more religious families with a more intensive Jewish studies programme.
They also disagree with the DfE on the second reason for rejection. “Our application was supported by and included volunteers with significant school experience,” the spokeswoman maintained. The team remained hopeful that “we will be able to form a plan to progress our vision for the new school”.
The DfE has indicated there will be further opportunities to submit applications.
Unlike free schools, voluntary-aided schools have full control over admissions.