The scheme proposes to build the homes on a 33ha site south of Rose Cottage Farm and the Lodge, Moor Lane, Haxby.
The latest plans seek to remove a planned primary school, with the developer saying the fewer homes meant less need for it.
They also say public consultation delivered mixed views over a new school, which many said would cause congestion. In addition, declining birth rates also lessened the need for a school.
The latest revision also seeks to remove gypsy and traveller pitches, which had been proposed in a second draft of the scheme.
Removing the pitches and the school, the third version argued, would allow more space for development and more open space. Overall, the latest scheme contains 12.96ha of open space.
Having gypsy and traveller spaces meant less space for housing and open space, which was contrary to council planning policies, it also said.
This follows the removal of an extension to the town cemetery in the second draft of the application, which it said was due to groundwater concerns.
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