Villagers in historic Binsey in Oxford are celebrating after plans to double its size were withdrawn.

Christ Church - one of Oxford University's richest colleges - submitted a planning application to the city council to demolish a barn at Manor Farm, and build three two-bedroomed and four three-bedroomed homes on the site.

Residents of the village, which has a population of 28, feared the development would damage its character.

The hamlet is famed for St Frideswide's Well, a place of pilgrimage in medieval times which became the treacle well in Louis Carroll's Alice in Wonderland.

The Environment Agency had told city council planning officers that it would object to the scheme, because the site is in the flood plain.

Alison Cobb, a member of the Binsey Village Residents' Association, said she was delighted the application had been withdrawn.

She said: "The residents are absolutely delighted.

"We are aware that Christ Church could re-submit an application in a reduced form at any time, but we hope they will realise that the same objections about flooding will be raised.

"We will all dance in some treacle to celebrate, followed by a pint at our local pub, The Perch."

Binsey's fame is so widespread that objectors have written to the council planning department from across the globe to protest at the development.

Smith-Woolley, the Woodstock-based chartered surveyors which had been handling the application for Christ Church, confirmed yesterday that the application had been withdrawn.