It had attracted multiple objections.
In the refusal notice for the site on Epinelle Road, St Sampson's, planners have recommended that challenge and compliance notices be issued to stop the current unauthorised use of the site by a gardening company.
But neighbour Colin Paver said he was concerned this was not enough.
He has lived across the road from the derelict site for more than 40 years and spearheaded a petition against the scheme, which attracted nearly 300 signatures.
A further 31 letters and emails of objection were also sent to the planners.
'We are over the moon it has been rejected,' he said.
'We have been on tenterhooks.'
However, he was concerned that the use by a gardening firm had continued, despite an earlier refused application, and he was worried about whether enforcement action would be carried out.
'I think planning should have a firmer hand on it.'
