PLANS to create a new York College have taken a major step forward, after city planners backed a scheme to transform an existing campus into a major housing development.

City of York councillors approved outline proposals to transform the college's Tadcaster Road site into a residential development of 360 two, three and four-storey homes and apartment blocks.

York College wants to sell the 23-acre brownfield site to help fund a £50 million state-of-the-art campus at nearby Sim Balk Lane, which secured planning permission in June.

The Tadcaster Road site will eventually house more than 700 people, with all existing buildings demolished apart from Ashfield House, which will be converted into flats.

York College principal Mike Galloway said today staff were "thrilled" that the council had backed their application.

"Planning permission for the Tadcaster Road site is another important milestone as we seek to ensure the opening of our new college in September 2007 and this will provide a massive boost for post-16 education in the region," he said.

The college first announced plans to replace the campus in October 2002, and the college's Sim Balk Lane site was chosen as the location last August.

The Tadcaster Road campus will cater for all 13,000 students and staff, while the new five-storey building is being built.

A number of developers are believed to have expressed an interest in the prime site, a quarter of which will be affordable housing, but it is unlikely to be in use for that purpose until 2010.

Receipts from its eventual sale will go towards the cost of the new college. The shortfall will be paid for the Learning & Skills Council and York College.

It is thought that the new building could save up to £1million in running costs and could be open by September 2007.

Updated: 10:31 Friday, August 27, 2004