Plans for up to 110 new homes at Appledore have been given the go-ahead.
The application from Baker Estates for development of land off Wooda Road was heard by Torridge District Council's plans committee on Thursday (January 16).
The application proposes a mix of mostly two storey detached, semi-detached and terraces homes, as well as public space and associated infrastructure.
The site is included in the Local Plan, but the proposal of just five affordable homes - well below the preferred 30 per cent - was an issue for councillors.
They voted to defer the application in November to have an independent viability assessment carried out.
With the work confirming original assessment, councillors ultimately voted the application through, with five in favour and four against.
The proposal was moved by committee chairman Councillor Chris Leather, who said: "I am disappointed that three assessments say that no affordable housing can come out of this scheme - they are offering five per cent.
"But if this site was turned down there would be another housing application. A housing development will have to happen on this site.
Councillor Leather said he was 'sympathetic' with the arguments put forward by local residents and ward members.
One resident, Sara Mendosa, told the committee the council was 'compromising' on Section 106 contributions and a 'derisible' number of affordable homes.
She added: "Torridge District Council's plans committee are letting down people who live in this area and offering even more second homes to people who live outside the area who can afford to run two properties."
Another, Jeremy Bell, said: "We do not want new, dense housing estates. What we want is schools, jobs and low-cost, affordable housing. This threatens the return of the former and makes no provision at all for the latter."
Baker Estates' managing director Ian Baker said: "This scheme has been independently assessed for viability not once, but twice by professionals who deem the level of affordable housing as appropriate.
"Councillors can be sure they are going to get a quality development. To say the scheme will be the death of Appledore, as one speaker said last time, is looking through the wrong end of the telescope."