NESTLED between two villages in north Durham lies Newfield Farm, where poultry is reared and wheat sways in the fields.

The businesses have been established for decades on the eight-and-a-half hectare site between Pelton and Newfields, near Chester-le-Street.

The Government says brownfield sites should be given priority for housing developments, but this farmland has been included in the Chester-le-Street District Council's local plan.

The council said it was drawn up before the advice was given, and that brownfield sites in the area are sparse.

A Government planning inspector has approved this opinion, making the land ripe for development.

It is owned by Persimmon Homes North-East, which took it over from Leech Homes, which bought the land more than 30 years ago.

Now, the Persimmon is considering submitting a planning application to build 200 homes on the site.

It is prepared to end the leases of the handful of businesses that currently operate there. They include a poultry farm, a base for rearing pigeons and rabbits, a joinery and a wheat farmer but the leaseholders are remaining tight-lipped about their future.

Persimmon Homes has held a public meeting about its plans, which was attended by 200 people who raised concerns about the proposal.

It would be considerably bigger than neighbouring Newfields, which has 117 households, and the proposal has sparked fears of urban sprawl among residents.

Some have formed a pressure group to raise awareness among the community.

Newfield-Pelton Action Group includes sales manager Iain Fergusson, of Heathmeads, Pelton.

He said: "This will destroy the remaining semi-rural aspect of life around here and the characteristics of the village.

"It will ruin the countryside.

"It will change the community fundamentally because there will be an influx of people from outside, because a lot of people from around here will not be able to afford them. The current social environment will be altered.

"The heavy construction that will be needed will mean the roads are going to be an absolute nightmare, and this could go on for years."

Mr Fergusson said the development would turn the area into a commuter belt for people who work in Newcastle, Gateshead, Durham and Sunderland.

Persimmon Homes is drawing up plans and intends to hold another public meeting before submitting a planning application, which it expects to do late next month or early in October.

Pelton-Newfield Action Group plans to keep residents informed about the development.

Mr Fergusson said: "The aim of the campaign is to reflect the views of residents.

"We want to find out what they are and what we can do to make it easy to communicate these views to the people who make decisions."

Persimmon's land buyer, Richard Cook, said a third of the homes would cost about three times the average earnings in the area, which works out at about £66,000.

He said the community would be thoroughly consulted and their views would be taken on board.

Mr Cook said: "We are going to instruct our architects to draw up more detailed plans because we want to be able to show more in depth what we are proposing.

"It is going to bring more people into Pelton from outside, but that is not a bad thing. The influence will enhance local shops and schools and keep them in working order for the foreseeable future.

"It will affect the landscape, but it has been allocated in the local plan.

"Even so, there is no guarantee we will get planning permission."

Mr Cook confirmed existing businesses will have to vacate the site if approval is given.

He said: "It is unfortunate, but we are a business and, if we are going to develop this site, the leases will have to come to an end and we will go through the necessary processes.

"The benefits will enable local residents to buy a new property and get to the next step of the ladder."

Chester-le-Street council is aware of the proposal, but said no planning application had been received yet.

Policy planning officer Mike Allum said: "From a policy point of view, it is their land and in an area designated for housing and in accordance with the local plan, which gives an application quite a lot of weight.

"However, if there is enough of an uproar, the councillors on the planning committee could be swayed and refuse it."

Once a planning application is received, a report is prepared for the committee.

Public reaction is taken into account and anyone who wishes to express a view should write to the planning department at Chester-le-Street District Council.