Developer Berkeley has withdrawn its application for 500 homes west of Southwater.
It said it would re-submit the application next year to Horsham District Council, bringing its proposals more in line with the council’s preferred housing strategy.
Consultation on the document closed on October 11 and included provision for 500 homes in Southwater.
A HDC planning meeting to decide the application in February 2012 was adjourned when Great House Farm was designated as a Grade II* listed building by English Heritage.
It was then amended down from 550 to 500 homes, and then put in abeyance.
Adrian Brown, managing director of Berkeley Strategic, said: “We welcome the fact that the council’s preferred planning strategy is proposing to allocate about 500 homes at Southwater and recognises the benefits that Berkeley’s plans will bring to the village.
“However, following discussions with the council, it is clear that there are elements of our existing proposal that do not align with the emerging policy.
“We intend to undertake further community consultation early next year and design a scheme that delivers local benefits and addresses concerns raised by the local community in relation to our previous application. A new planning application will be submitted in 2014.
“We look forward to continuing to work with the council and the local community in planning for the future of the village.”