Plans for 26 homes in South Molton have been withdrawn.
Applicant Spirebourne Limited had proposed to develop a redundant piece of land in the town centre next to the cattle market car park which was previously a haulage depot and recycling centre.
North Devon Council approved the scheme for land off Southley Road in November 2021, subject to an agreement for three affordable homes and £20,000 for education or public open space areas.
The plans included car parking for 36 vehicles.
Planning officers said the application had not progressed and there had been no correspondence about moving it forward since.
Given the time that had passed, the applicant had agreed to withdraw the plan.
The number of affordable in Spirebourne’s scheme was slashed from eight to three after a viability appraisal found the original plans to be unaffordable.
New developments are expected to provide 30 per cent of affordable homes.
By Alison Stephenson