Plans for 234 homes that would have “sprawled into the essential boundary between Godalming, Milford and Eashing” have been rejected despite warnings that Guildford Borough Council (GBC) will lose a costly appeal.

More than 80 letters of objection were submitted to GBC against the Ashill Land proposals for land north and east of Eashing Lane, despite the offer of 117 affordable homes and a children’s play space.

Concerns over cumulative impact were consistently raised as the site lies next to the huge Ockford Park development across the border in Waverley.

There were also concerns development could overload road and water network, with Thames Water saying it lacked sufficient capacity and would need to invest in the area in order to maintain supply.

The site lies within green belt and within an Area of Great Landscape Value (AGLV) but outside Surrey Hills designated land.

Officers said that changes to planning rules meant it was now classifiable as grey belt and, because the council lacked enough deliverable sites to meet its housing targets, the proposals should be approved.

“If approved, development would sprawl westwards into the countryside that currently provides an essential boundary between Godalming, Milford and Eashing,” said objector, Kate Moody.

“The need for housing, including affordable housing, is real but that does not remove the duty to test whether this is the right site.”

Isabel Pearce said the plans would cause irreversible harm and, when added to other recently approved schemes, would put almost 1,000 new homes into the rural area without a coherent masterplan.

Tracy Puttock, speaking on behalf of the applicant, said the land had been identified as suitable for development as part of wider scheme in Ockford Park.

She added that the council has failed in its housing delivery, falling below its five-year supply.

Before voting to refuse the application, on the basis that they felt the grey belt test had been met, officers warned of the potential costly consequences.

They said: “I would have to advise you at this point, I think there is very little chance of you sustaining that reason for refusal.

“Before you take a vote to refuse, my advice is that this is not a sustainable reason for refusal and you will not be able to defend this position if it’s going to appeal.”

Find out about planning applications that affect you by visiting the Public Notice Portal.

Councillors refused the plans by five votes to two with one abstention.