A developer claims Heybridge is not the right place for expansion.
Maldon District Council increased the number of homes it wants to see built in north Heybridge from 900 to 1,235 last month.
The extra 335 were taken from the south Maldon ‘garden suburb’, which will now have 1,375 new homes.
Numbers for both areas will not be finalised until a planning inspector considers the draft Local Development Plan later this year.
Nick Mann, director of Dartmouth Park Estates, is one of three developers working on the south Maldon project and is due to build between 400 and 600 homes.
He said: “Heybridge isn’t viable for a number of reasons.
“The infrastructure demands are just too big."
But the council said it is viable and redistributing the homes between Heybridge and Maldon will help with financing the flood alleviation measures needed in Heybridge.