Campaigners have lost an 18-year battle to save green fields.
Residents went to the highest court in the land but were told yesterday that judges had ruled against them.
Clayton Fields, between Birkby and Edgerton, has long been a target for new homes.
But residents formed the Clayton Fields Action Group and fought developers every step of the way.
They thought they had won when the land was designated a village green, a decision backed by the High Court.
But the landowners refused to back down and took an appeal to the Supreme Court.
A group of residents, led by Bill Magee, attended a day-long hearing in London last month. Yesterday Mr Magee, 72, received a call from solicitor Alastair Wallace who broke the bad news. Residents are still awaiting a full written verdict.
Mr Magee said: “It is definitely the end of the road and we are now in the hands of the planners.”
Community groups have been fighting to save the site since 1996.
Landowner Paddico Ltd wants to build houses. It is thought there were plans for 22 houses on the site as far back as the mid-1960s.
Any development will be subject to a new planning application.
“We await any applications and will make our views known then,” said Mr Magee. Residents were supported by Labour MP Barry Sheerman, who said he was outraged by the decision.
“It’s an absolute disgrace and I’ll be raising it in the House of Commons,” he said. “This is a very sad day for the local community as this has been a wonderful piece of green land in Huddersfield.
“I hope Kirklees Council takes every possible step to stop inappropriate development on this site.”
The Supreme Court ruled that Paddico would suffer “injustice” if denied the right to develop the land.
A statement from Paddico said:
“Now this matter is resolved and Village Green status has been removed, we intend to work closely and sympathetically with the local authority in relation to future development on Clayton Fields. The existing planning permission requires open space and footpaths as part of any development.”
