A FAMILY has blocked the sale of their home after hearing it would have been used as a hostel for ex-offenders.

The sellers pulled out of the deal at the last minute just as neighbours launched a campaign to fight the plan.

Signpost Housing Association which proposed to house three 'vulnerable' people under licence at the property in Glen Avenue, Weymouth, was today accused of making a major public relations blunder because it failed to inform the community about its plans.

The sellers were about to exchange contracts with Blandford-based Signpost when they decided to pull the plug.

The attractive property, a three-bedroom semi-detached house with a garden and commanding sea views, is now back on the market with a guide price of £115,000.

Karen Smith, divisional director for estate agents Goadsby & Harding which is handling the sale, said: "The sellers have instructed their solicitors to withdraw contracts and have told us to put the house back on the market.

"The sale was well progressed but the sellers were concerned about who was going to be living in the property.

"They sought assurances from Signpost but no information was forthcoming about who these vulnerable prisoners would be."

John Chamberlain who lives next door to the property was among residents who expressed concern about the plan.

He said he was satisfied with today's outcome but added: "Signpost could have handled this issue a lot better.

"They have a moral responsibility to the community as well as to the people they are housing and should have informed residents what they were proposing to do."

Councillors for the area, Nigel Reed and Samantha Braund, also became involved in the saga after they were contacted by residents.

Coun Braund said: "Signpost was not prepared to come down to Weymouth to explain its plans at a time when residents were angry and scared and wanted to know more."

She added: "Signposts's public relations is zero. They really could have tried harder.

"I have no problem with hostels, we all deserve a chance. I just think this was handled in the wrong way."

A spokesman for Signpost said the company was disappointed but hoped another property could be found in Weymouth.

The spokesman added: "The company's philosophy is to work with local authorities and communities to provide affordable housing and services to those in need.