A housing scheme aimed at enhancing a rundown part of a town is being blocked by a dispute over a "ransom strip" of land which is preventing access to the site.

Outline planning permission has already being granted for the new housing development at Wood Street, Shotley Bridge, near Consett.

But Derwentside district councillors are likely to deny detailed planning permission this week, because the existing access roads to the site are regarded as unsafe.

And a "ransom strip" owned by Nomad Housing Association is blocking a safe access. Developer David Wellstead, of Country Life Homes, has accused Nomad, which wanted a "lot of money", of being obstructive.

He said: "Nomad is supposed to be a regenerative force in the community, but it appears not to be upholding that ethic in this instance."

District council principal planning officer Darren Cumings said: "Outline planning permission was granted on condition that access to the site was through Oley Meadows, with Wood Street blocked off. However, a small area of grassed land between Wood Street and Oley Meadows is owned by Nomad Housing Association. This is acting as a ransom strip and is preventing access being gained from Oley Meadows."

Mr Cumings said Mr Wellstead had hoped to reduce the ransom value of the land by showing that there were other potential accesses, but this was not a planning option.

He said: "We see this as a flagship development. The mill area has been neglected for a number of years and is an eyesore, but until the parties agree on the disposal of this land to allow access, I cannot see how the development could take place to a satisfactory standard."

Nomad Housing Association assistant director Ian Heginbottom said: "We are registered as a local landlord and when we dispose of any piece of land we have to get the market value for it.

"We have asked Mr Wellstead to provide us with his plans and costings so that we can instruct an independent valuer to provide a sound assessment of what that piece of land is worth, but we have not got that information."

Detailed permission is being sought for the demolition and rebuilding of part of the former mill to provide seven apartments and for the erection of 23 dwellings.