Hallam Land announced its plans in February 2014 to build an estate called Newlands on green fields off Peak Lane in Stubbington, between Fareham and Gosport.
The plans, which included 1,550 homes, a pub, a health centre, a primary school and parks, provoked outrage from many residents who want to see the land remain as countryside.
Now, more than 18 months on, Hallam Land has confirmed that it has dropped the number of houses it wants to build to 1,100 and that it will be holding a further consultation.
It has updated its website and sent postcards to people living nearby.
But residents say the plan is still not welcome and have vowed to fight on.
Christopher Arnold, of Cains Close, Stubbington, said: ‘This proposal is totally unacceptable to the people of Fareham and Stubbington.
‘Any such development would overload local services like doctors and schools.
‘This potential loss of yet more countryside and open space for the profit of landowners and developers is very short-sighted as it is residents and the council who will have to pick up the pieces after the developers have left.
‘The medical facilities in Stubbington won’t be able to cope with thousands of extra residents.
‘We must stand up and be counted and fight back against Hallam’s plan.’
His views were echoed by Christine Wall, of Peak Lane.
She said: ‘I understand that people need housing but it seems they are building everywhere and there is not the infrastructure to cope with it. It is not on.’
Fareham’s council leader Sean Woodward said the council had not yet received an amended planning application from Hallam Land.
Although he added that the application was not included in the council’s local plan and was therefore not needed to meet the authority’s housing target.
He said: ‘It is strategic countryside gap.
‘We are providing much-needed housing elsewhere in Fareham so we do not need to be providing here.’
To see the revised plan, go to newlandsfareham.com.
Hallam Land was contacted by The News for a comment but did not respond in time.