An application by Oakdene Homes to build 319 flats and 12 houses with parking and shops was approved by Lewes District Council's planning committee on Wednesday.

This is the third phase of Oakdene's project on the west bank of the river.

Phases one and two have been completed and include houses, flats, a fishing complex, a riverside walkway, a public car park and shops. John McLean, from Morgan Carn, the architects behind the project, said: 'I am extremely proud of what we have already achieved and phase three is even better.

'It will provide the missing link between phase one and two and the town centre, the Fort Road Recreation Ground and West Beach.

'Some members have expressed concerns this could be a white elephant which will never get built.

'I have the chief executive of Oakdene sitting behind me and he gives his assurance if this is approved today it will go ahead.'

Oakdene asked to include a smaller amount of affordable housing, just 7.5 per cent, rather than the usual 25 per cent because, they said, they were contributing to the community elsewhere.

This includes new flood defences, pedestrian and cycle crossings and money towards an increased bus service. They also propose spending £2 million on improvements at the dilapidated Railway Quay.

Cllr Peter Gardiner said: 'I am very reluctant to agree to this proposal because I see this as not providing the level of affordable housing we would dearly like to see.

'I hope, should phase four come before us, we would not be asked to consider a similar low amount of affordable housing.

'With great reluctance on the affordable housing issue this is a proposal I feel we should support.'

Cllr Peter Jones said: 'It is innovative, it is well designed, it is something Newhaven desperately needs.' The application was approved unanimously.