The plans for 75 apartments off Parrs Wood Lane in East Didsbury were rejected by Manchester council after hundreds of objections.
It comes after residents raised concerns about the impact the development, dubbed Blackbird Yard, would have on traffic and parking on the already congested roads around it.
Councillors voted against the scheme last July after town hall planners recommended that planning permission should be refused.
But the council's planning department performed a U-turn after developer Dandara appealed the decision.
In a rare move, the local authority said it would not defend its decision to refuse planning permission, leaving residents and their elected representatives to oppose the development at a public inquiry which was held three weeks ago.
The council said it would not contest the appeal after receiving 'additional information' which addressed the reasons why the application was refused.
Their reasons for refusal included parking, traffic and suitability for the area.
This story is from the June 17, 2023 edition of Manchester Evening News.
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This story is from the June 17, 2023 edition of Manchester Evening News.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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