The City Council is taking legal action after a government inspector ruled that 120 homes could be built at Home Farm in Pinhoe.
Exeter City Council refused the application in January 2014 but following an appeal from the developer, the case went to a public inquiry in September.
The Inspector concluded that student housing should not count towards meeting housing targets. She said that the Council could not therefore demonstrate the required five year housing supply and there was therefore a presumption in favour of sustainable development. She rejected concerns that allowing the appeal would create an undesirable precedent.
The Inspector dismissed concerns expressed by local residents regarding traffic, wildlife and flooding issues considering they were all adequately addressed.
