Stockton-on-Tees Borough Council has withdrawn from the proposed sale of land off Norton High Street after listening to residents and ward councillors.
The Council-owned land, behind Millbeck Care Home, was the subject of a planning application from a private developer keen to build 47 new apartments.
Councillor Bob Cook, Leader of Stockton-on-Tees Borough Council, said: “Like all councils facing budget pressures we will consider selling surplus land to raise capital receipts that can then be reinvested into Council projects. The Government actually encourages councils to do this to raise funds.
“But we consider such sales on a case by case basis. In this case we’ve listened very carefully to the residents and the ward councillors who, it has to be said, have made their case in a very constructive manner, and after weighing up all the pros and cons we’ve decided not to proceed. The land is no longer for sale.”