Elmbridge Borough Council had previously refused outline planning permission before applicant, Taylor Wimpey, launched an appeal.
The council says having sought independent legal advice, it has become clear that it has “little or no prospect” of successfully defending the appeal.
The council says it’s because of recent changes to national planning policy.
The original plan submitted was for 2,000 homes to be built on the land which lies beside the A3.
The council says the advice also highlighted a significant risk that the council could face substantial costs if it continued to pursue arguments that may no longer be supported by national policy or recent appeal decisions.
The appeal will now be determined independently by the Planning Inspectorate, and a public inquiry is scheduled to take place in January.
The deadline for members of the public to submit comments to the Planning Inspectorate has now passed.
Statement from Elmbridge Borough Council:
“We know many local residents have taken a close interest in this application and that news about the appeal process may be concerning or disappointing, particularly for those who opposed the development.
“As part of preparing for the appeal, the council reviewed the case in light of recent changes to national planning policy and a number of recent planning appeal decisions. Having sought independent advice from both legal Counsel and a specialist planning consultant, the council was advised that there is now little or no prospect of successfully defending the appeal. The advice also highlighted a significant risk that the council could face substantial costs if it continued to pursue arguments that may no longer be supported by national policy or recent appeal decisions.
“While we appreciate this will be frustrating for many residents, the council has a responsibility to make decisions based on the best available planning and legal advice and to protect public funds from unnecessary financial risk.”
