A BLUNDER by planners which cost council taxpayers £15,000 in compensation has sparked calls for changes in how applications are handled.

Wear Valley District Council has agreed to reimburse a Bishop Auckland homeowner who claimed he lost money on the sale of his house because his neighbours were allowed to build a balcony overlooking his back garden.

Homeowner Derek Jervis complained to the Ombudsman in July that the council had not consulted him when the neighbours' original application for a sloping roof had been changed.

The altered application was passed under "delegated powers" allowing officers to make the decision without referring it to the council's development control committee.

Mr Jervis' house in Clover Drive, Etherley Dene, had gone on the market for £230,000 in February but was valued by two agents at £210,000 and £205,000 after the balcony was built. He eventually received an offer of £215,000 and is preparing to move this week.

In a report to the council's regeneration committee, monitoring officer Cathy Prest said the failure to consult had been clear maladministration which had caused Mr Jervis to suffer an injustice.

She said: "Should the council fail to compensate Mr Jervis, the Ombudsman could well make a finding of maladministration against it.

"However, the Ombudsman is aware of the council's proposal and had advised me that she will not pursue the complaint further because the proposal to settle is reasonable."

The report also says that two planning officers, who have both now left the council, were responsible for the mistake and consultants are in the process of drawing up new guidelines, including procedures for dealing with amended applications.

Chris Foote Wood, leader of the council's Liberal Democrats, said: "Members should be dealing with more applications, not less. Too many are dealt with internally by officers without reference to members. That's wrong."