Stunned councillors and residents have responded angrily after an independent Planning Inspector gave the go-ahead to the Seager Road housing development.

Moat Homes had appealed to the inspector after Swale ordered it to demolish 35 properties – many of which flout planning permission.

Housing association Moat Homes was given permission to build 35 properties by Swale in 2011 – 27 houses and eight flats – on land behind Seager Road.

But when the estate began to take shape, neighbours noticed the new buildings were higher than allowed – 11.19m instead of 9.75m – and overlooking their back gardens.

Moat Homes applied for retrospective planning permission which was unanimously rejected by the planning committee twice.

Furious councillors demanded the whole estate be pulled down and gave the developers six months to demolish the homes and remove the concrete foundations.

But Moat appealed and a three-day hearing by inspector Chris Preston took place in May with two days of detailed site visits.

On Friday, he revealed he felt the homes should be allowed to stay.

He admitted there was a “significant divergence” from the approved plans in design and height but the removal of balconies and changes to the layout of the garages was “relatively minor”.

He said: “I consider the variations from the approved scheme are of such magnitude that the development is essentially a different scheme to that approved and thus represents unauthorised development which falls outside the scope of the 2011 permission.”

But he added: “Enforcement of the planning system is intended to be remedial rather than punitive.

“In other words, if an unauthorised development is considered to be acceptable in planning terms, planning permission should be granted.

“Enforcement action should not be taken simply because a development does not have permission or fails to comply with the terms.”

And he rounded on councillors, saying: “That was explained to the planning committee in the officer report of May 21, 2015, which stated members should not let the fact the application was retrospective influence their decision.

“Clearly, any unauthorised development faces the risk of enforcement action if found to be unacceptable in planning terms. But that is a judgement that needs to be taken on the merits of each individual case.”

Allowing Moat’s appeal, he said: “As such, my decision in relation to this development does not set a precedent or indicate that any other breach of planning control would necessarily be immune from the threat of enforcement action.”

But he insisted that no one should be allowed to move in until drains for water sewerage were completed and approved in writing by the council.

Furious resident Sue Holmes, one of the lead campaigners against the development, stormed: “Moat Homes has got off scot-free despite the inspector acknowledging this development was unauthorised.

“He says enforcement of the planning system is intended to be remedial rather than punitive.

“In other words, if an unauthorised development is considered to be acceptable in planning terms, planning permission should be granted.

“I am extremely disappointed. Moat Homes is out of order to build without planning consent.

“What message does this decision by the inspector send out? It is obvious – there are no rules for them, only rules for us.”

Swale’s planning committee chairman, Cllr Bryan Mulhern (Con), said: “Despite many hours of officer and councillor time spent on the approved plans, the developer has simply built a development without the necessary planning permissions.

“This seriously undermines people’s faith in the planning system. We are seeking legal advice on the possibility of challenging this decision.”

Council leader Cllr Andrew Bowles (Con) also spoke of his frustration.

He said: “It’s terrible. We have a planning system designed to take into account the views of residents and then one external person from Bristol can overturn it all. It makes a nonsense of the whole system.

“I don’t think anyone can look me in the eye and say these houses will not affect people’s standard of living.

“If this is the correct legal decision then something is very wrong with the law.”

Minster Cliffs councillor Andy Booth (Con), vice-chairman of the planning committee, said: I must now reflect on my position, my judgement and my passion to do my best for the residents.

“I am bitterly disappointed and totally devastated with this decision.

“It sends out a signal to large developers that they can come to Swale and build whatever they like. It’s a travesty. It sends out all the wrong messages and makes the planning committee look incompetent.

“If you or I built an extension which was too large you can bet your life we wouldn’t be allowed to get away with it. I am disappointed for the residents.”

Ward councillor Mick Galvin (Ukip, Sheerness) said: “This is totally out of order.

“It will open the floodgates for other developers.

“It sends out completely the wrong message. I am so annoyed and very disappointed. This is the wrong decision.”

Swale Labour leader Cllr Roger Truelove said: “It is becoming increasingly obvious the government is ready to destroy the development control responsibilities of local government.

“The council’s Local Plan is being traduced by the Planning Inspectorate and forcing more housing on Swale than can possibly be sustained.

“Whoever believed localism was a government priority?”

However, MP Gordon Henderson says he feels for the residents but that Swale council should also take responsibility.

He said: “I am very disappointed with the decision, particularly since the inspector acknowledged the negative impact the development will have.

“I believe that allowing Moat to flout the original planning permission and build the properties higher sets a very dangerous precedent.

“However, I accept the logic in the inspector’s argument that any development of that site would have an impact on residents which therefore begs the question why on earth Swale council granted the original planning consent in the face of considerable opposition from local people?

“Sadly, I believe the council must accept blame for this debacle and apologise to the residents who have be affected.”

A Moat Homes spokesman said: “We are pleased with the Planning Inspectorate’s decision. It means we can now deliver these 35 much-needed homes for Swale.”

The inspector’s decision comes two weeks after Swale was overruled by the High Court after spending £20,000 trying to stop travellers setting up a caravan camp in Hartlip. The travellers ignored a ‘stop’ notice so the council took them to court.

But a judge dismissed the injunction and allowed the group to submit a retrospective planning application for eight pitches.