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The Government has approved the appeal by Cala Homes to build 2,000 homes at Barton Farm, north of Winchester.
Winchester City Council rejected the planning application in 2010, saying it was premature, and there was little evidence to suggest that the housing need and lack of development had reached the levels required to release this site.
The Secretary of State initially supported the Council’s position but had to review his decision when it was ruled unlawful. He has now decided to give consent for the application.
Cllr Keith Wood, Leader of the City Council, said,
“Personally I am disappointed that the time has come to release this site for housing but the Secretary of State has applied his own rules and we have no choice but to follow them.
"We argued strongly about the application, but we have been overtaken by events.
"The Council now needs to ensure that the development of this site generates all the promised benefits to the community.
"We plan to set up a forum to help ensure that the development minimises the disruption to Winchester residents, and the infrastructure requirements are implemented properly and promptly.”