A GUEST house on the outskirts of Durham is expected to be demolished to make way for a fast food restaurant as part of a shopping development on the outskirts of Durham.

Durham City Council has given Sunniside Properties outline planning permission for the restaurant on the site of Autumn Leaves Guest House, at the junction of Dragon Lane and Front Street, in Dragonville.

The firm's proposals include a retail park that will include stores selling DIY and electric goods, a creche and parking on land in Dragon Lane owned by Mono Containers.

The retail park proposal was approved early last year by the Office of the Deputy Prime Minister John Prescott.

Three other retail developments for the Dragonville area, which has seen a new Tesco supermarket launching the regeneration of the area, were also approved following a public inquiry.

The decision was welcomed by Durham City's Labour MP Gerry Steinberg, who had lobbied for development in the area.