A PLAN to save an old mill by converting it into shops and homes has been welcomed.

Challener Developments has been given planning permission to revamp the Old Mill, in Station Road, West Auckland, into three ground-floor shops and 12 flats spread over three storeys.

Wear Valley District Council and West Auckland Parish Council were keen to save the mill, which is in the village conservation area and was part of a car showroom until two years ago.

After an plan to knock it down was withdrawn in 2004, parish councillors and conservation officers worked with English Heritage and the developers on ideas for the conversion.

Although the mill has not been accurately dated, traces of its original use can still be seen.

Records show that West Auckland would have had a mill since the 12th Century and it may have been on the same site. Now there are hopes that the development could encourage other improvements in the surrounding area.

Wear Valley's development control committee welcomed the conversion after hearing that the building had become an eyesore.

Councillor Barbara Laurie said: "This is an extraordinarily ugly building, but it is a historic building which needs to be preserved. The plans make it look as good as it could be."

Councillor John Lethbridge said: "It is ugly and it is an eyesore. The proposals will certainly enhance the scene."

West Auckland councillor Colin Mairs said: "This will improve the whole area. It is exactly in keeping."

David Townsend, the council's head of development and building control said grants may be available towards the cost of the conversion.

He said: "Investment in this building should be wholeheartedly welcomed as this is a key building in the Wear Auckland Conservation Area.

"The application site is in dire need of investment. The building itself is considered to be of considerable historic interest and is important due to its physical prominence and its cultural heritage value."