PLANS to demolish a former car showroom to make way for a new sheltered housing block have been scrapped amid claims the move is unviable.

Last year plans for 44 sheltered housing units for people aged over 60 on the old Lookers Renault garage, in Military Road, Colchester, were approved.

It would have also included ten flats at another location on the site.

But the developer has now gone back to the drawing board due to the "economic climate" making the plans "no longer viable".

The applicant says this is down to the reduction in funding for care related schemes.

In has instead submitted new plans to pull down the showroom before replacing it with 58 one and two bedroom flats.

All of the buildings on site, including the former car showroom with offices above and a six bay workshop, will be demolished.

The new plans seek to build 48 flats in one block and a further ten in a separate block.

The proposals have also been amended to create private gardens for the ground floor flats.

The planning application said: "Since the approval of the mixed C2 / C3 scheme, national economic changes including the reduction in funding to care related schemes has resulted in the consented scheme no longer being viable.

"The proposed scheme will instead offer a wholly C3 residential scheme with 58 no. residential 1 and 2-bed apartments across two buildings.

"The two proposed apartment blocks have been carefully situated on the site to address relationships with existing buildings and boundaries, the overriding pattern of development in the area and their impact on the street scene."

The site is home to a number of buildings including the former car showroom with offices above and a six bay workshop to the rear.

There is an additional flat roof sales office at the front of the site as well as a distribution centre and storage area behind.

All of the buildings on site will be demolished to make room for the new development.

Colchester Council will have the final say on the plans.