A scheme aimed at revitalising a derelict eyesore by creating new housing for elderly people collapsed yesterday.

McCarthy and Stone Developments was denied in its bid to transform former industrial land behind Bedale Market Place - because it refused to provide any affordable housing on the site.

The company had submitted plans to Hambleton District Council to demolish disused historic buildings in the area, paving the way for 50 flats to be built in a sheltered complex.

But members of the authority's development control committee refused to grant permission after hearing of local concerns.

The scheme had won the backing of the town council, as well as the Council for the Protection of Rural England.

But conservationists protested about the plans to pull down several 19th Century buildings, as they did not agree with the developers' claims that the structures were deteriorating.

Council officers had also recommended the project for refusal because of the lack of affordable accommodation.

Councillor David Smith, ward member for nearby Crakehall, told yesterday's meeting: "There is a great temptation to rush at the first proposal that comes before us. But to me this is very much a first draft of what might in fact be there. In its current form it is clearly wrong."

But, in a heated debate, Councillor Ian Grieve accused the committee of living in the past. He said: "I think sometimes we are concerned with turning Hambleton into a museum site.

"I don't see that the existing buildings are of any merit or deserve to be retained.

"You couldn't wish for a better idea than to have old people within walking distance of the Market Place."

McCarthy and Stone first made an informal approach to the council about the possible redevelopment of the site three years ago.

The company, which specialises in projects for elderly people, was proposing sheltered housing with a mixture of two and three-storey flats, a resident manager and communal facilities.