Protesters gathered outside county hall to oppose the houses

More than 250 people signed a petition objecting to 52 new homes in Porthyrhyd claiming an influx of people may dilute spoken Welsh and the village's culture.

The Environment Agency had raised flooding concerns and planners were due to discuss the application on Thursday.

Carmarthenshire Council said Lovell informed officers this week it did not wish to continue with the application.

But a spokesman for the authority said the company was free to submit a revised or new version of its plans in the future.

When the application first appeared before councillors last month about 40 protesters gathered outside county hall in Carmarthen.

The application was then adjourned for officers to consider the Environment Agency's comments.

Had the meeting gone ahead, they were recommending the scheme was rejected.

Ann Rhys, who had campaigned against the houses, said the decision was a victory for every small village in the county.