Skipton Properties has been ordered to demolish unauthorised building work at Long Lee.
The decision is the latest development in the controversial saga that has outraged both the planning panel and local residents.
At the last meeting of the panel, councillors branded the company "cavalier" and turned down the firm's retrospective application for houses at Box Tree Gardens.
This latest unanimous ruling, made behind closed doors for legal reasons, means that Skipton Properties will have to demolish one house and reduce the height of eight others.
Skipton Properties originally submitted plans to build two-storey houses at the site but are currently building three-storey homes without planning permission.
Keighley Area Planning Panel voted yesterday to reject the application to amend the original plans, on the grounds that they were unacceptably detrimental to residential amenities.
Plot 20 at the site has caused resident Karen East, of Dale View Road, particular concern. The house does not comply with original plans and is 2.1 metres taller than originally specified.
The planning panel has decided that this building should be demolished.
It says: "The scale and in particular the height and position of the unauthorised development is unacceptably detrimental to residential amenity."
The members have given Skipton Properties four weeks to demolish the work from the date an enforcement notice is served and are advising the transportation, design and planning director to resist any appeal against enforcing the decision.
Building work currently under way on plots 21 to 28 Box Tree Gardens will also be affected.
Planning members have ordered that these three-storey houses be reduced in height in accordance with original planning permission.
The decision was made on the grounds that the scale and height of this unauthorised work intruded into local amenities.
Again, the firm has been given four weeks to make the necessary reduction in height.
The transport, design and planning director will be requested to take enforcement as soon as possible.
However, if Skipton Properties appeals against the decisions, the enforcement action will be suspended until the outcome of the appeal is determined.
Miss East said: "I can't believe it, I was just about to go home when the receptionist said that I was to contact the Keighley News for a comment on the planning decision. I'm ecstatic, I'm absolutely delighted.
"We are not out of the woods yet, I'm sure that they will appeal but I'm really pleased."
She added: "At least if they are not having an easy ride of it perhaps they will think twice before doing it again.
"I'm really impressed, I really did not believe it would go as far as this and I really do hope that this does go all the way."
Skipton Properties said they were unaware of the decision and could not comment at this stage.
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