Developers wanting to build about 500 homes are heading for a clash with planners and councillors over a 48-acre site at Bicester, which is earmarked for industry.

Gallagher Estates haz sent about 16,000 leaflets to homes in the town and neighbouring villages outlining its proposals for the land at Gavray Drive, between Langford Village housing estate and the rail embankment.

Now Gallagher has submitted a planning application, including a primary school, to Cherwell District Council for 497 homes at the eastern and western ends of the site.

Gallagher said it was aware of the land's designation, but would be prepared to appeal if permission was not granted.

Langford Village Community Association community matters sub-committee chairman John Broad said: "Firstly we would prefer the land was left as a wildlife area. Our second preference would be for housing and a desperately-needed primary school as the one on the estate is full. But we would be against industry of any kind."

Chamber of commerce chairman David Simpson said: "It is absolutely essential for the prosperity of Bicester that we retain industrial land."