Developers have been given permission to build ‘luxury’ homes on the Bosworth Battlefield site.
Carl Maughan has postponed to September an application to demolish farm buildings to build 25 homes on his Mulberry Farm land in Stoke Golding, near Hinckley.
Planners at Hinckley Bosworth Borough Council put the decision on hold, also citing a lack of affordable housing.
But independent consultants employed by the council determined the plan would not be financially viable if changed, which was approved on Tuesday.
Council leader Stuart Bray said it was “disappointing” that the scheme failed to meet the requirements of the council’s affordable housing policy.
But he said the site should still be allowed because it is brownfield and designated for development in the local plan.
he said: “This is a well-built farm and we might be able to do something with it.
“Part of the battlefield has already been built on existing structures on the farm. The only actual battlefield area will be people’s gardens.
“Are we going to stomp our feet and say that’s not our policy and eliminate it? It’s part of the process that applicants can come forward and object.
“We tested this independently. If you challenge that process, you’re acting unreasonably.”
The plans had already undergone “substantial revisions” in conjunction with planning officers before being submitted to the council’s planning committee in September.
Original plans to demolish the farmhouse and build a pond on the ridge-and-furrow land, which contains archaeological remains of medieval farming practices, were abandoned.
Instead, the farmhouse will be retained and other farm buildings on the brownfield site will be demolished to accommodate two- to five-bedroom homes alongside a village green and community orchard.