FAMILIES and councillors have welcomed news that the development of Dorchester's old St John Ambulance site is to be scaled down.

Plans put forward last year by Signpost Housing Association were slammed as 'overcrowded, overbearing and claustrophobic'.

One anonymous resident even claimed the proposed development would 'create a ghetto' in North Square.

But Signpost have now withdrawn their application for three houses and seven flats and a smaller development has been put forward by Poole-based developers Villaframe Limited.

Under the new scheme there would be four three-storey houses and the existing offices in Orchard Street would become two houses with extensions. The developers would also construct new vehicle and pedestrian access and a parking area.

Mavis Bowring, who lives in nearby Orchard Street, said: "Everybody who lives around here was concerned about the development.

"But as long as any children who live there have space to play - because it's not safe to play on the street here - and as long as they all have their own personal parking, I'm happy with any social development."

Molly Rennie, chairman of Dorchester Town Council's planning committee, said: "The town council have no problems with the plans, it's not intensive development and is nowhere near as large and over-bearing as the previous scheme."

The application will now go before West Dorset District Council planners for their approval.