A SCHEME for new houses in East Cleveland has failed partly because of fears that the development could lead to flooding.

This concern was raised when an outline application for 30 homes on agricultural land at Carlin How came before Redcar and Cleveland planning committee.

The applicant, Mr Michael Bulmer, who lives in the village, said his scheme would have brought much-needed alternative housing to the area. He wants residential development at Low Cragg Hall Farm, off the Brotton Road, where two previous schemes have been turned down.

The latest plan prompted 15 letters of objections from people living nearby along with concern by Northumbrian Water.

The water company said the application should be rejected as it was within a catchment where flooding of property was known to occur. "Any additional flows would exacerbate the problem and a scheme to deal with flooding is not in our short-term programme," said a spokesman.

The Environment Agency said the sewerage system in the Skinningrove Beck catchment area was unsatisfactory, and it would want conditions as to drainage and other matters included with planning consent. A report said: "Sewage regularly surcharges during wet weather, resulting in pollution of the beck. We fear this development may exacerbate the situation, leading to increased risk of pollution."

The Council for the Protection of Rural England said the scheme would expose the village to the potential of more applications for development. "It is essential to protect undeveloped rural land," said the CPRE.

Local objectors said the area did not need more housing, whether mainstream or low cost, as property was not selling. Also, they feared an increase in traffic, detriment to green belt and uncertainty over the future of Skinningrove steel works.

Four letters of support said new development would revitalise small villages, enhance the choice of housing, help shops to survive and keep schools open.

Mr Bulmer argued that Carlin How consisted almost entirely of two-bedroomed terraced property costing between £12,000 and £35,000.

"It has been 30 years since new family homes were built and there is no opportunity for people to progress to bigger and better homes," he told the committee.

Many workers at the steel plant had to travel from other areas because of the lack of appropriate housing.

"Many people born in Carlin How would prefer to stay there if there was an alternative. The economic stability of the village is threatened by this lack of suitable housing and loss of its young families," he said.

"This application offers people a chance to stay and move to the sort of property they need for their family requirements."

The council resources director, Mr Paul Kirkham, said the arguments did not overcome the strong policy objections for development outside the limits. Since the first two applications were refused in 1999, the planning background had been strengthened with preference being given to brownfield sites.

Councillors said further housing in the Carlin How area should be assessed as part of the review of the local plan rather than on a piecemeal basis.

Rejecting the application, members agreed there was concern over the decline in rural villages and this was something they would look at when they reviewed the local plan.

After the meeting, Mr Bulmer said shops, pubs and clubs were all struggling