PLANS to build 65 homes in Clayton-le-Moors look set to be approved despite a council freeze on building new houses.

Norwest Estates, which has offices on Blackburn's Greenbank Business Park, has applied to resurrect a development on the site of the former Boythorpe factory.

Similar plans caused outcry among residents five years ago, but Hyndburn Council planning chiefs say the scheme is smaller than the last one - which was never completed - and covers only brownfield land.

And they believe the old application set a precedent which means the new plans should be allowed.

More than 180 residents signed a petition to block plans to build 77 houses on land off Lower Barnes Street in 1998, but planners passed the application.

Only 12 houses were built before developers W and C Hill Construction Ltd went into liquidation.

Now residents say the council's moratorium on house building should apply to the 65-home plan.

In November the council's cabinet approved the freeze as part of a Lancashire-wide plan to cut the number of new homes being built in the county.

However, there are exceptions to the freeze. Councillors can still give permission for new developments if they have regeneration benefits, are slight changes to applications already approved - which applies to the 65-home plan - or they will help the preservation of listed buildings.

In a report to be presented to the planning committee next week chief planning and transportation officer Brendan Lyons said: "The site could be developed under the existing planning permission. The principle of development of the site has therefore been accepted through the previous grant of permission."

Residents living near the proposed development have written to the council saying they are worried about an increase in traffic and subsidence.

But Mr Lyons said those issues do not apply to the site: "I do not feel it would be appropriate to refuse permission on the grounds that the development would conflict with the council's restrictions on new residential development.

"While there has been recent residential development in the area since the previous approval which has added to traffic levels in the area, the scheme would not result in increased traffic generation to such a degree to warrant refusal."