A £1.9 million thatched Hollywood-style' mansion in Chipping Campden must be reduced by nearly half, a Government inspector has ruled.
Planning inspector Keith Turner said Westington View, formerly Westington Pound, did not represent "a sensitive interpretation of the local vernacular style".
"Rather it is a parody because it uses familiar elements in unfamiliar or inappropriate ways," he said. "This, combined with the significant increase in size and bulk, result in the building being unduly prominent in a sensitive area of landscape."
He dismissed an appeal by Blockley-based building developer Mark Rathbone. It was against a Cotswold District Council enforcement notice calling for the demolition of the unauthorised dwelling and garage, which was not built in line with approved plans.
The gross floor area of the building was 450 square metres as opposed to the 290 sq m for which permission was granted.
However, Mr Turner quashed the enforcement notice as it sought to remove parts of the building that were authorised.
It means CDC can now take renewed enforcement action to ensure the property, which was bought in good faith by German couple Angela and Gerrit Pies in 2006, is changed in accordance with the approved plans.
Chipping Campden mayor Chris Jones expressed sympathy with Mr and Mrs Pies but said the district council had to take firm action or "invite others to break the planning rules with impunity".
"The town council supported CDC's refusal to grant retrospective approval for the development and is pleased that CDC's stance has been vindicated," he said.
Mr Rathbone said he was not able to comment until he had discussed the matter with his lawyer.
He said his lawyers had proved that the house was not a new build and wanted it made clear that it was not correct to say the house would have to be demolished.
"It's back to negotiating again," he said.
A spokesman at Mr Pies' offices in Solingen said the couple were currently on holiday in Africa.
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