OUTLINE plans to build houses, flats and business units on a steelworks site were welcomed by villagers yesterday.

Banks Developments has pledged to include the views of local people in arriving at final proposals for transforming land at Wolsingham Steelworks which is closing with the loss of 57 jobs.

It submitted an outline planning application last month, hours before councillors were due to vote on a separate bid for a similar development by Yuills, leaving villagers facing the prospect of a total of 250 homes being built on sites a few hundred yards apart.

Villagers, who studied Banks' plans in the St Anne's Centre yesterday, said they wanted it to go ahead rather than the Yuill site.

But there were concerns about congestion in Wolsingham Market Place and pressure on local services.

One lifelong resident said: "There are already too many cars in the centre. It is impossible to park now, so how will it be when there are more houses?"

Pensioner Les Hogarth, from Uppertown, said: "I think there are already too many expensive houses in Wolsingham.

"If there are cheaper homes for local families then I am all for it, but I am afraid they will be bought by people who travel away to work."

Retired businesswoman Dorothy Gascoigne said: "I am in favour of the development. I wish it had come first, before the other application. I definitely don't want both.

"I hope the building is done somatically and we don't lose the character of the village.

"It should have affordable housing to help young people start on the property ladder so they don't have to move away."

Mark Dowdall, the company's divisional director for the environment and community, said that people's views would be collected in a report.

He said: "There have been some interesting suggestions including the need for single-storey accommodation for the elderly. We are listening to the views of local people and they will be included when the plans are refined.

"We want the best solution for the Wolsingham community and are keen to collaborate with Wear Valley District Council to achieve that."

The Steelworks site covers 5.7 hectares, including new public open space on the banks of the River Wear.

Banks has estimated that it could cost £3m to bulldoze the works buildings and clean up contaminated land.

A copy of the application is available at Wolsingham library or the parish council office, both in the town hall.

For more information, call Mr Dowdall on (01740) 658500.