Paul Newman Homes has lost its latest appeal to the Planning Inspectorate to build 50 homes at Valley Farm.
The defeat comes ten years after its original application to build over 900 homes. Another application to build 350 homes was defeated in 2015.
Campaigners took to social media to celebrate.
Tom Daly posted: “I am totally exhilarated, this is fantastic news for Linslade, and I am overjoyed that all our efforts over ten years have paid off and feel that this is now an end to the matter.
“I’m really pleased at how we all worked together over the years to rid ourselves of the threat to our locality.”
MP Andrew Selous added: ““I’m pleased that the inspector has backed the views of local people. Paul Newman New Homes has been applying to build houses in the wrong place, against both Central Bedfordshire and Aylesbury Vale’s local plans, for some time now. Housing need is being met by significant building elsewhere in Central Bedfordshire and this was always the wrong application in the wrong place.”