A planning inspector has dismissed an appeal by Beck Developments for 36 houses on land of The Meadows in Colne.
Pendle Council rejected the application on highway safety, design and drainage grounds.
Concluding, the inspector said the scheme represented “poor design” but Pendle Council would have to pay costs to the developer because at appeal it could not substantiate the highway safety or drainage reasons.
Reacting, Coun. Tony Greaves said: “Bizarrely, the council has been judged to be liable for costs because the inspector found that some of the council’s reasons for refusal were unreasonable.
“So it’s a victory for residents for the moment but expect the developers to come back with an amended scheme.”