EAST Lancashire could be set for a housing explosion after it emerged that there should be no limits on new developments.

For the past five years councils in the area have restricted the number of houses given planning permission, believing they were acting in accordance with Government guidelines.

But ministers - following a question from an East Lancashire peer in the House of Lords - have now said that local authorities had always been allowed to permit as many developments as they wanted.

The Government said local authorities had "misunderstood" the policy.

But the apparent U-turn has left council bosses and planners "amazed".

Coun Peter Britcliffe, leader of Hyndburn Council, said: "Apparently the Government has woken up after a five-year dream and people should feel free to apply again for planning permission."

Experts are now predicting that East Lancashire could be set for a new-build explosion, with thousands of new developments previously banned being given permission.

Councillors, builders and estate agents agreed that the move was good news for East Lancashire, as they expect new, high-quality homes to bring more people into the area.

Hundreds of potential housing developments across Burnley, Hyndburn, Pendle, Rossendale and the Ribble Valley have been turned down in the past five years, after councils quickly reached 10-year housing allocations set out in forward plans from the Government.

Only houses replacing ones being demolished, or developments for affordable housing, have been passed, to keep within the figures.

Under the housing moratoriums, many applications which would have regenerated "grot spots" have had to be rejected, while problems of housing shortage have hit areas like the Ribble Valley.

Chairman of Ribble Valley Council's planning and development committee, Coun Richard Sherras, said: "At the moment we just don't know what's going to happen or what the planning officers will be working to, so we can't make any commitments to housing."

The leader of Hyndburn Council Peter Britcliffe and Burnley Council leader Gordon Birtwistle invited all those who had been turned down because of the moratoriums to resubmit their applications.

Coun Birtwistle said: "As far as we are concerned in Burnley there are now no restrictions on housing numbers."