A BLUNDER that cost council taxpayers £15,000 in compensation has sparked calls for changes in how planning applications are processed.

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

Derek Jervis complained to the Local Government Ombudsman 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, but was valued by agents at £205,000 to £210,000 after the balcony was built.

He eventually received an offer of £215,000.

In a report to the council's regeneration committee, monitoring officer Cathy Prest said the failure to consult had been clear maladministration.

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

"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 since left the council, were responsible for the mistake and consultants were in the process of drawing up new guidelines.

Councillor Chris Foote Wood, leader of the council's Liberal Democrat group, said: "Members should be dealing with more applications, not less.

"Too many applications are dealt with internally by officers without reference to members, and that is wrong."