Despite receiving many entries for the plot in the Buckinghamshire city, the British jury decided that not one was up to scratch.
Organisers have decided though to name two entries as runners up; submissions that they believe might be worked up to a point where they are good enough.
These schemes were submitted by a duo of Polish architects, made up of Lukasz Wojciechowski and Marta Mnich, and a trio of UK architects called Richard Henson, Kristina Lundvall and James Payne.
There was however more success on the two other British sites. The plot in Oldham was won by a UK-based group of independent architects, comprising Alexander Franklin, Phil Catcheside, James White, Rachel Basha, Harry Dobbs, Geoffrey Morrow, Lloyd Woolnough and Michael Guin.
And the Stonebridge competition, for a site in north-west London, was won by the London-based Witherford Watson Mann.
Despite the problems in Milton Keynes, CABE chairman John Sorrell maintained an upbeat attitude. 'For us, this is just the beginning of the process,' he said.
'CABE will work with the teams of young architects and our partners in order to make sure that these cutting edge ideas turn into real places.'