THE housing association behind a scheme for nine houses and two bungalows in Watchet has withdrawn its designs - but new plans will be submitted within six to eight weeks.
Redland Housing Association has looked at other possible sites in the town but bosses have decided to stick with the former school playing field between Severn Terrace and South Road and start again from scratch.
The association has admitted that the wave of opposition to the proposals among nearby residents was part of the reason for the re-think.
But Redland's housing committee was also not happy with designs in which some of the homes had bedrooms downstairs and sunk into the ground.
Last month, around 60 angry residents gave Redland's chief executive Donald Pearce a frosty reception at a public meeting when they tried persuade him to scrap the plans.
Mr Pearce said on Wednesday that it was the best site but the architect had not been given instructions to ensure 11 homes were included in the new designs on the county council-owned land.
He said: "We will be looking to new designs that will satisfy the objectors and given us homes that we will be proud to let out for the next 60 years.
"Our application will definitely be for this land because Watchet does not have many other sites. I have looked myself but there are no other options."
He added: "The architect is now working on the plans but we have not told him that he has to fit 11 homes or less because some issues will have to be resolved."
Elma Hawkins, who has lived in Severn Terrace for the past 40 years, said she and other residents would carry on fighting to block the scheme.
She said: "We will wait to see the amended plans but our concerns are still the same. We are worried about the effects of subsidence on our properties, the added traffic and the safety of young children.
"Surely if Redland dig away at the land for these homes then there will be subsidence problems for us in Severn Terrace with our homes being over 100 years old. Insurance companies will not want to know us."
Mrs Hawkins added: "I am not against housing but this is the only bit of green land left in the centre of Watchet and it should either have been left or used for something else."