After a meeting with planning officers at Aylesbury Vale District Council, British Waterways and its property development partner, H2O, have withdrawn their planning applications to build 14 homes on the site at Marsworth Yard near the canal.

The application compelled about 130 people to write to the council voicing their concerns.

Canal user groups up and down the country as well as village residents expressed their views.

One of the main objections raised regarded the demolition of a 200-year-old stone walled carpenter's shop.

In its feedback to the plans, English Heritage said the building could be as old as the canal itself.

Historic buildings and areas adviser Richard Peat said: "It was probably contemporary with the construction of the Aylesbury Arm of the Grand Junction Canal in 1815 and formed a group with the listed bridge, canal house and lock and the canal junction indicating the scale of operation on the canal."

Sandra Costello, archivist for the Marsworth Local History Group, said: "I am very happy. I sent letters of objection and my main focus was on the preservation of the carpenter's shop and the old crane associated with this.

"It's a main feature of Marsworth. It's not wonderful architecturally, but it should not be replaced by town houses.

"Everybody in Marsworth would say that the site needs something doing to it and various thoughts have been put forward.

"Low density housing would be acceptable, but it's within a conservation area and any development must sensitive to this and bear that in mind.

"We feel that British Waterways was anything but sympathetic.

"Marsworth is only a little dot on the British Waterways map, but it's within their power to make it something beautiful."

Councillor Bob Kennedy, chairman of Marsworth Parish Council, said: "We are pleased that the application in the form that it was submitted.

"Clearly, we expect a reviewed application will come forward and we hope it will take into full account of the comments made on this application."

A British Waterways spokesman said: "The decision (to withdraw the application) is based on the need for further work on the issues surrounding the demolition and clearance of the site.

"H2O remains committed to its objective of bringing this under-used canalside site back to life at the same time as improving the local village environment by removing the derelict concrete batching plant.

"H2O has undertaken to carry out further consultation with local residents and the local council before submitting an improved proposal."

"The application was not the best for the village and the best for the canal and we need to find that answer."