WYRE Borough Council may be forced to pay compensation to a resident whose house value plunged after a council cock-up.
The man said he had also lost the view across fields from his house because a developer was wrongly allowed to cross his property and build houses on land behind his home.
The row, which has seen a provisional finding of maladministration by the local government ombudsman, centred on a strip of land just nine inches wide in places.
The council says it 'regrets' its mistake.
According to the unidentified man, the roadside strip was on his land. He believed that by refusing to let developers cross it he could effectively stop any more developments on the other side of the strip.
But the council could not find relevant paperwork and wrongly insisted it was "adopted highway" meaning he could not object to developers using it it cross his land to their site.
Now the council should pay up, according to York-based ombudsman, Mrs P A Thomas.
She said it was clear from the council's own records that 'Mr Everson', as the report called him, was told the strip of land was part of the adopted highway.
"The council had the adoption plan in its possession but was unable to locate it and gave Mr Everson advice which later proved to be incorrect. This was maladministration," she said.
By the time the council had found the relevant plan and 'made the position clear' it was too late to stop houses being built.
"Had he been correctly informed that the land has not been adopted Mr Everson says that he could have prevented the houses from being built and preserved the view across open fields which he previously enjoyed and prevented the devaluation of his property," she said.
And she recommended that the council pay the amount lost on the value of Mr Everson's house, plus an additional sum to make up for the time and trouble he had gone to in making his complaint.
Rodger Wightman, acting head of paid service at Wyre Borough Council admitted: "We have made a mistake which we regret.
"Now, the council has three months in which to consider the recommendations which the ombudsman has made and to decide on the action we shall take.
"This process will begin with a report to the cabinet, who will then discuss the situation."
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