A £5m housing development could transform a former school site in the centre of a dales village.

A plan to build executive homes behind St Anne's High School, in Wolsingham, is due to be considered by Wear Valley district councillors next month.

Developers Hyperion Homes, of Durham, have already shown members of Wolsingham Parish Council designs for converting the main school into town houses and apartments and building 34 properties in its two-and-a-half acre grounds.

Known locally as The Convent, St Anne's shut down at the end of the 2001 summer term because it could not attract enough pupils to stay viable.

It was supported for 110 years by the Catholic Sisters of Mercy, in Sunderland, who put it on the market in April for £500,000.

New owner Hyperion has drawn up a scheme ranging from two-bedroom apartments to a five-bedroom house, with prices from just under £100,000 to about £400,000.

All the school's main buildings would be retained, apart from the old nursery, which would be cleared to give access. Part of the planning requirement would be to include five affordable units, while the company is also offering to buy play equipment for the village recreation ground.

Hyperion could be ready to start work in March and expects work to take two years.

Nigel Ekins, who leads its sales and marketing team, said the development would retain the character and frontage of the building.

He said: "We are trying to create a village environment through a scheme which will be accessible to local residents.

"We hope the development will be very much part of the village and it will be something that people will enjoy seeing.

"It is a very exciting scheme and we are thrilled to be involved with it."

Wolsingham parish councillors will discuss the plans at their January meeting. Parish and district councillor Vere Shuttleworth said: "It is a £5m contract so it is very important to the village. There are issues to consider, including parking and access, and we want it to blend in with the rest of Wolsingham."