A FIRM has dropped plans to reduce the number of shops when it redevelops its property.

Traders in Claypath, Durham, feared two of their five ground floor units would go in the second phase of the scheme by their landlord, Fultons of Sacriston.

They lodged an objection to an application for permission to create flats for students, in the former council offices.

Dr Muriel Sawbridge told Durham City Council's development control committee: "It is a major source of worry among retailers and residents.''

But the committee heard that the reduction of the number of shops had been abandoned, following discussions between the firm and planning officials.

The firm now plans to convert the first, second and attic floors from offices to flats of various sizes, providing a total of 26 bedrooms.

The City of Durham Trust objected to external fire escape and large roof light plans, but the scheme was amended to meet trustees' concerns.

Development control manager Allan Simpson said: "This application accords with this aim to increase and reinforce the vitality of Durham as a 24-hour city and to ensure the use and associated maintenance of older buildings.''

He said the dropping of the second phase, which included luxury flats and reduction of the shops, met objectors concerns.

But he said: "That's not to say it couldn't come back as another proposal."