A SCALED-down housing development may still be built on the Gardiners Lane South area of Basildon.

Five families, whose homes have been blighted by the threat of major development in the area for nearly 20 years, could finally be properly compensated if proposals go ahead.

Earlier this year the Echo revealed how the latest plans for up to 3,000 homes on the site, much of which is owned by the Homes and Communities Agency, were shelved due to the recession.

However, residents, who have lived under a planning blight since the site was first mooted as a business and homes park in 1991, were again left in limbo, as the agency still wanted to buy them out.

Following months of negotiations, the agency has agreed to draw up a planning application for the land owned by all the families, so it can be sold to developers on their behalf.

This is likely to net them more money each than if they were bought out by the agency or through compulsory purchase orders, which it has previously threatened.

Terry Fuller, director of the agency for the east of England, said: “Over the past five months the agency has met with the residents of Gardiners Lane South to work together with them and Basildon Council to achieve a mutually beneficial outcome for the parcel of land between the sports ground and the rifle range on Gardiners Lane.

“The residents are keen to develop this land and the agency is enabling discussions to take place with all parties looking at potential options.”

The agency is now drawing up a planning brief for the area detailing the number and type of new homes that could be built, before the residents are consulted.

If the residents are happy with it, the agency will put it out to tender to house builders on their behalf. Mr Fuller added: “Once informal offers, including any terms, are received, the agency will facilitate further discussions with the residents to decide jointly on whether any offers are acceptable to all parties”.

Despite the development, residents have reacted with caution.

Pauline Missing, of Gardiners Close, said: “Unfortunately, as we have experienced in the past, their proposals do not materialise as expected and it is hard to comment at this stage until we receive the planning brief.”

Council leader Tony Ball said: “The residents approached me and I said the council would see what it could do to move the situation forward so they were no longer left in limbo.”

About ten other families from the area have been bought out by the agency at market rate over the years.