A controversial homes plan has been turned down by the government – but campaigners are not popping the champagne corks just yet.

Planning inspectors dismissed an appeal by Gladman Developments to build 200 homes just off the A2 at Moor Street in Rainham, where the Westmoor Farm boot fair is held.

The application was rejected by Medway Council in 2015, on the grounds it would harm the rural character of the area, result in the loss of farmland and adversely affect the character of the Moor Street conservation area. But Gladman appealed the decision.

Following a six-day hearing, the inspector has agreed with the council and refused planning permission.

The news has been welcomed by residents living nearby who were worried about increased traffic and pressure on schools and GPs.

But the threat of more housing remains.

A spokesman for Gladman Homes was unable to say if the firm would be pursuing its plans for the site. He said Gladman was “taking stock” of the appeal and would be basing its decision about how to progress on a subsequent review.

An application by Persimmon Homes for 300 houses on another plot of land in Otterham Quay Lane is also expected to go to appeal after being rejected by Medway Council.

Meanwhile, outline permission has already been given for 136 homes just half a mile away in Mierscourt Road and work has already started on the construction of 52 homes at the bottom of Otterham Quay Lane.

Cllr Howard Doe, whose ward includes the Moor Street site, said he was relieved Gladman’s appeal was dismissed but said he was not celebrating just yet.

“It is a marvellous victory for local people.

“I am very relieved. It is the wrong location for more homes, the A2 cannot cope.

“The development in Mierscourt Road will cause enough strain on the roads."

Cllr Doe added: “I hope the decision is not reversed with any future application or appeal.

“The residents, like myself, are reserving judgement at this stage, until we know what the developers next moves are.”

Medway needs to find enough land for 30,000 new homes over the next 20 years.