Multi-million pound plans to create more than 100 new waterside homes in Clayton-le-Moors have been welcomed as a ‘great boost’ for the area.

A planning application for the development – which would consist of 96 three or four-bedroom homes, 24 one or two bedroom flats, and eight ‘live and work’ units – has been submitted to Hyndburn Council.

Private landowner Gerry Holmes and British Waterways have submitted the application for the brownfield site after credit-crunch delays have held up the project since 2006.

Janet Storey, ward councillor for Clayton-le-Moors, said: "It’s great news for Clayton that these plans are finally on the table and that this area of land could finally be getting the regeneration it needs.

"It’s just a shame this couldn’t have been put through a couple of years ago, but it has given us the time to work with the developers who have really taken on board the needs of the community, and I think the plans look in great shape.

"One of our key concerns was that any building on the waterfront must be of the highest quality and from what I’ve seen of the plans these new properties will be a great addition. What we didn’t want was just another block of flats which no-one would buy, these are family homes that will fit into the character of the town."

But fellow ward member Tim O'Kane believes the development could stretch local roads and schools to breaking point.

He said: "We have to look very seriously at the impact this will have on traffic in the area, and also on the effect this will have on local schools. An application such as this will have inevitable consequences on the infrastructure of a town and that is something we must carefully consider.

"We have two primary schools in that area which are already at capacity and if there are to be any future developments we need to look at how our local schools can accommodate that."

The Clayton Triangle site runs parallel to the Leeds and Liverpool Canal from Enfield Wharf to the Corn Mill.

The Grade II listed Albion Mill will house the live/work units, while the 120 new homes will be created on derelict land.

The abandoned mill had formerly been occupied by a furniture manufacturer and is the last mill standing on the site from the areas 19th century heyday, when it played a central role in the thriving cotton industry.

Ian Sprott, development surveyor, British Waterways said: "The scheme which our architects, Campbell Driver Partnership has developed, really encapsulates the fantastic location of the development by the Leeds and Liverpool Canal to transform it into a thriving community.

"We are really pleased to be submitting a planning application with our partner Gerry Holmes to Hyndburn Council to create an exciting new housing development for Clayton- le-Moors."