A PLAN to create a new hotel at a Banbury town centre “eyesore” could scupper a scheme for 40 affordable homes.

Slighte Ltd wants to convert boarded-up Crown House into a 73-bedroom hotel and is bidding to knock down part of neighbouring 18 Bridge Street for a new restaurant and five duplex apartments.

Cherwell District Council had been eyeing the site for 40 affordable flats and was moving to force a sale by a compulsory purchase order (CPO).

A decision on Slighte’s proposal is expected this month.