PLANS to build houses on a former dairy site which had been earmarked for a £12.5m business park have been approved.

The Stonebridge Dairy site, near Neville’s Cross, Durham City, stood idle for several years after the Express Dairy closed in 2006.

In 2008, developers Helios City won planning permission for a business park with 6,200sq metres of office space.

However, the development never went ahead and the site became an eyesore off the busy A690.

Recently, building work started on site on a new £2m headquarters for the Church of England’s Durham Diocese.

Today (Tuesday, July 22), Durham County Council’s central and east area planning committee granted Gentoo Homes planning permission for 29 houses.

There will be two, three and four bedroom houses on the estate, which will be accessed off Dairy Lane.

Local councillor John Turnbull had called for a decision on the matter to be deferred, to allow for further talks over the potential traffic impact.

"Dairy Lane is being used as a race track, its two junctions with the A690 need more thought and someone is going to have a serious accident," he said.

However, council highways officer John McGargill said while the roads in the area were congested, the estate would generate less traffic than the old dairy and he was happy Dairy Lane would operate satisfactorily.

Cllr Alan Bell said the site had been an eyesore for many years and it was a brilliant scheme overall, although he also raised concerns over the nearby roads.

Nevertheless, the scheme was unanimously approved.