Kingston University has halted its two-year dream of creating a student village at the former sewage works site in Surbiton.

The university and Spiritbond Student Housing have jointly withdrawn their appeals against Kingston Council's decision to refuse planning permission for the ambitious development for some 1,860 students and key workers.

Surbiton councillor Yogan Yoganathan, who objected to the development, said: "The developer may reapply with some modifications but residents in the Lower Marsh area are very happy their concerns about increased traffic, noise and high density, have been heard and recognised.

"Nearby Surbiton Cemetery is happy that families can have peace and quiet while thinking of loved ones."

Spiritbond Student Housing partner John Stanley promised a modified application for the site later this year and said the withdrawal was by no means a victory for the objectors.

The proposal was to replace existing buildings on the Lower Marsh Lane Metropolitan Open Land site with an all-inclusive student village.

It would have included residential buildings for some 1,716 students, 144 key workers, a doctors' surgery and health centre, a youth centre, a sports pitch and parking for more than 430 cars.

Mr Stanley indicated the modified application would include more beds for key workers and amendments to the height of the buildings, originally intended to be three to four storeys.

A joint statement from Kingston Council, Kingston University and Spiritbond Student Housing said: "Kingston University and Kingston Council will be working with the wider community through the local development framework to address students' accommodation needs and to consider the most appropriate use for the Lower Marsh Lane area."

Kingston University pro vice chancellor for strategic development Dr Ken Hopkins said more student residences close to the university would reduce pressure on the private rental market.

Conservative prospective parliamentary candidate Kevin Davis said: "We do not want the eastern sections of Grove and St Marks' wards to become a student ghetto, but a balanced community."

The council's executive is due to formally consider its local development framework on Tuesday, February 8.

rclifford@london.newsquest.co.uk