House-builders McCarthy and Stone will replace the eyesore patch between Blackmore's and the Gazette office with 55 sheltered homes and a retail element, following the decision by Alnwick District Council's development control committee on Tuesday evening.

Members were unanimous in their support, despite long-standing concerns by planning officers over the scheme, including the numbers of affordable properties.

Last month, the application was deferred so that further negotiations could be held between the council and the company, which specialises in homes for over-55s.

It had been recommended for refusal, but McCarthy and Stone upped the number of low-cost properties from six to 10.

Although the figure was still below the council's policy of 35 per cent affordable housing on major developments, it was agreed that the company had compromised as far as possible.

Alnwick ward councillor Gordon Castle said: "The site has been derelict for some considerable time, and this development will restore a very important street to its former glory.

"It's been a gap in the town's teeth for too long."

The site has a long and complex planning history, dating back to 2004.

McCarthy and Stone initially asked for 61 apartments, but the council failed to determine the application, leading to an appeal which was later withdrawn by the company.

In 2005, a revised scheme came forward, for 59 properties and ground floor retail, but it was also refused.

A year later, and a new plan was presented for nine apartments and shops, which was approved.

In 2006 it was superseded by plans for 13 dwellings, including three affordable units, but was withdrawn by McCarthy and Stone.

And in 2007, permission was granted for the same application, but this time with an extra low-cost home.

However, that also gave way to the latest application, which was finally approved on Tuesday after months of wrangling.

The company has also agreed to provide a contribution to the new Alnwick Park of £27,500.