The council has said that it would abandon its Sites and Policies Development Plan Document (S&P DPD), which was submitted for examination in December.
The withdrawal came after a planning inspector raised concerns over the S&P DPD, outlining that it was not based on an objective assessment of the need for housing, as is required by the National Planning Policy Framework.
The inspector said: "It is also possible that, by basing the housing requirement on the Core Strategy requirement, the DPD could be found to be not lawful."
The inspector added that the site selection methodologies used by the council were flawed, and the the S&P DPD should be re-drafted to make it simpler.
The inspector said: "I found that the [S&P] DPD was extremely difficult to understand and, in my view, dealt with issues in an overly-complicated way."
The council said in light of the concerns it would "not be a good use of resources to proceed with the Sites and Policies DPD", and that the plan should be withdrawn.
It said the new local plan would take into account the issues raised by the inspector.
A report put before the full council recommending withdrawal said: "Withdrawal of the S&P DPD and replacing it and the Core Strategy with a Local Plan is the only practical option taking account of the matters raised by the Inspector and the government’s preference now for single Local Plans.
"The recommendation [to withdraw the S&P DPD] provides the opportunity to bring forward up to date strategic and detailed planning policies that are no longer informed by regional policies."