PLANS to convert a nursing home into a hostel for asylum seekers were scrapped at the eleventh hour, it emerged yesterday.

Plans to change the use of Lakeside Gardens, in Washington, on Wearside, to create a hostel for up to 50 residents, were to have gone before Sunderland City Council's development sub-committee last night.

However, on the eve of the meeting, the council revealed applicant Aeon Development had withdrawn its proposal.

Members of the committee were recommended to grant planning approval, but only for two years, after which authorised use was to have been "discontinued" and the premises reinstated to its former condition.

Other conditions were to include the maximum limit of 50 on the number of residents housed at any one time, and only for use by asylum seekers.

Eighteen staff were to work at the centre, in Station Road, Columbia.

The application provoked a storm of protest, including a petition from 820 people in the area.

Concerns were raised by Washington Asylum Seekers' Project, fearful it would damage the work it has already done, and affect relations built up with the local community.

Northumbria Police confirmed the building has already suffered incidents of criminal damage, including racist graffiti, and they have raised concern that these could grow once the building was occupied.

Graham Baker, a director of Aeon Developments, said the strict conditions were the off-putting factor to the company which was to have operated the hostel.

"Aeon Developments applied on behalf of another party.

"The other party is no longer interested and the freeholder has therefore decided the application should be withdrawn and should not be re-submitted."

Mr Baker said it is now up to the freeholder, a Guernsey company, to decide what happens to the building.