HOUSE building in Burnley could grind to a halt because so many properties are springing up across the borough.

The council has a strict limit on the amount of new homes over the next five years - 540 until 2009 - and is rapidly reaching it.

And planners have been ordered to keep an eagle-eye on proposed developments to ensure it is not breached.

When the capacity is used, the authority will have to refuse new proposals - even in areas where they want to encourage development.

Housing bosses will look at revising guidelines for future developments to encourage high-quality builds in urban areas that also fall within the Elevate intervention areas.

Building under the Elevate scheme will not be affected.

Council top brass hope the move will encourage regeneration of run-down areas and brownfield sites and halt out-of-town developments.

The possible moratorium in Burnley follows a similar stance in Pendle, which was made off-limits to developers this month.

Limits on development were set out in a 15-year Structure Plan, which runs out in 2016. Pendle already has enough housing to last until 2015.

And current planning applications in Burnley will fill the capacity if granted.

Burnley council's head of planning and environment services, Susan Graham, said: "We may well come to a situation fairly shortly where we have to say no to developers."