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Neighbours in Lower Shiplake, near Henley-on-Thames, Oxfordshire, say the influx of properties is ruining the countryside, clogging up already busy roads and threatening to overwhelm the local primary school.
Fears centre on plans for 84 homes that won planning permission despite being proposed on land above an aquifer that supplies drinking water to 50,000 people.
As part of the proposals, Taylor Wimpey developers will drill holes in land at Thames Farm and inject them with concrete to stabilise the ground as it is vulnerable to sinkholes.
Residents of village, where homes are valued in the millions of pounds, claim the planned works are a 'public health concern' that could 'contaminate' the fresh water supply for the surrounding area.
Meanwhile, another campaign has been launched against proposals to build 60 homes on a meadow in the village that was previously used to graze ponies.
The planning application has been submitted by Bolney Court Inc, an offshore company based in the British Virgin Islands that is reportedly linked to Swiss billionaire Urs Schwarzenbach.
A number of new-build housing estates have been given planning permission around Lower Shiplake, near Henley-on-Thames, in Oxfordshire
Claire Needham, Norman Askew and Toni Ward are campaigning against proposals to build on the picturesque field behind their houses
Pictured: The land that may be turned into a housing estate as part of controversial plans linked to Swiss billionaire Urs Schwarzenbach
There are already dozens objections on South Oxfordshire District Council's online planning portal - with campaigners arguing they had been assured the land would never be used for housing.
They also say the proposals are in conflict with the neighbourhood plan that was approved in a referendum in 2022 to protect the area's rural character.
Neighbour Norman Askew, 83, said: 'Obviously this is going to ruin our house but our main concern is that it is outside the local plan.
'It is not filling in the village, it is expanding it and Shiplake already has had so much development.'
Local Claire Needham added: 'I am worried about the impact it is going to have on our drinking water.
'They haven't sorted out the aquifer and every response we've had has just been quite patronising.
'We are a tiny village and it is being turned into a metropolis. There has been a lot of development in such a short space of time.'
Peter Boros is chairman of the campaign group that has been calling for the Thames Farm development to be scrapped
Pictured: The site of the Thames Farm development which sits on top of an aquifer that supplies fresh water to Henley and the surrounding area
A general view of the houses in Lower Shiplake near Henley-on-Thames in Oxfordshire
The plans for the housing estate are just the latest in a number of proposals for new housing that are already under way in and around Lower Shiplake.
Locals questioned the need for the new homes as they said they were 'not affordable' - adding that developers were struggling to sell some of the ones that had been completed as they were priced at nearly £3million.
One neighbour, who wished to remain anonymous, said: 'What I don't understand is that they are not planning on putting in any amenities with it.
'At the moment there is only one tiny primary school. That is an extra 60 or so houses to add to our village. We only have a pub and one corner shop.'
Local Toni Ward added: 'There is a neighbourhood plan that has been agreed with the government. It is going against what is a diplomatic process.
'Shiplake is just getting bigger and bigger and it is destroying the character of our village.'
Meanwhile, neighbour Kelly Elshafey said: 'My number one concern is the traffic. This is road is a main artery to Henley and it is already a nightmare.
Neighbours in Lower Shiplake, near Henley-on-Thames, Oxfordshire, say their village cannot cope with the influx of new housing
A general view of the village shop in Lower Shiplake, Oxfordshire
Pictured: One of the new-build estates which has recently been constructed near Lower Shiplake
Earlier this month a planning inspector approved three appeals relating to the Thames Farm development, in turn paving the way for construction to begin.
The row began back in 2017 when Taylor Wimpey was granted permission to build 95 homes at the site, which was subsequently reduced to 84.
South Oxfordshire District Council had initially rejected the plans, citing concerns about possible impacts on the aquifer and the public water supply.
The formal refusal notice stated the application 'failed to demonstrate that the proposed engineering operations would not pose an unacceptable risk to the aquifer and nearby public water abstraction points'.
Peter Boros, chairman of the group that has been resisting the proposals, also said: 'This is not simply a local planning decision.
'It concerns a nationally significant groundwater resource, the security of a public drinking water supply and the protection of some of the rarest freshwater habitats in the world.
'Once damage is done to an aquifer, there is no reset button.'
Locals questioned the need for the new homes as they said the ones that had already gone up were 'not affordable' - and not all of them had been sold (general view of the village)
However, the planning inspectorate found that these reasons were 'not strong enough to resist the appeals' and that the benefits of the scheme outweighed its adverse impacts.
Taylor Wimpey has said their new drainage plans will ensure there are no off-site impacts relating to surface water.
A spokesperson for Taylor Wimpey told the Mail: 'Following significant work to address the concerns of the local planning authority and other stakeholders, we are pleased that the inspector has approved our proposals for new homes at Thames Farm, Shiplake.
'His ruling particularly noted that our application demonstrated 'full compliance with the adopted development plan for the area'.
'We are reviewing the planning conditions imposed by the inspector in order to ensure that we are in full compliance as we look to start work on site, and will continue to work closely with stakeholders and the local community.'
A spokesperson for South Oxfordshire District Council said: 'All planning applications for new developments are assessed against local and national policy, including neighbourhood plans prepared by the community, like the Shiplake Neighbourhood Plan 2022.
'Key sites to meet the local need for housing are allocated appropriately according to settlement size and type as well as local infrastructure and service availability.
'As the planning authority, we're unable to comment directly on live planning applications.'
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