The answer to your second paragraph is I'm sorry to say an unequivocal yes, and you should not have done it.
When this sort of situation arises you must always take the Council to the brink, make them issue an Enforcement Order, contest it and then make a Court tell you what to do. The point is (1) that at the brink they may not issue the Order, or (2) they may modify it in your favour, and (3) the Court Order is the very basic fall back position, you have to do it, there is no alternative, and there is always the chance that you may defeat the Council. As it is you will have voluntarily given away what perhaps could have been your sole use land and yourself devalued your property and this fact may be used against you when you try to recover your loss.