A controversial housing development in the heart of Jericho looks likely to get the go-ahead after revised designs were welcomed by north Oxford city councillors.

Berkeley Homes and W Lucy and Co wanted to build 260 homes at the site of Lucy's former Eagle Iron Works, in Walton Well Road.

But neighbours were worried about the size of the development, which included a large underground car park, six three-storey and five-storey blocks on either side of the Oxford Canal, plus an office block.

Now developers have put forward scaled down plans, for 186 flats on the ironworks site, with another 63 homes on the west side of the canal.

The plans, which will include 40 per cent social housing, were approved in principle by councillors on the north area committee.

They voted by three to two to give the plans their seal of approval, before they are considered by the council's strategic development control committee, which has the final say. The central area committee is also being consulted.

Councillors Jim Campbell, Alan Armitage and Susan Roaf voted in favour, while Jean Fooks and Clark Brundin voted against, with Tony Hollander, who is the chairman of the SDCC, abstaining.

Mrs Roaf said: "This is a very intensive development, but it will give this stretch of the canal a unique character and an awful lot of people will be able to walk to work or to the shops."

But fellow Liberal Democrat Jean Fooks said not enough amenity space was being provided and there was no renewable energy provision such as solar panels. She also questioned whether every resident would need a parking space.

Fellow Liberal Democrat Alan Armitage said his major regret was that the new development would block views of the Radcliffe Observatory from Port Meadow.

Andrew Saunders-Davies, executive chairman of Berkeley Homes, said renewable energy measures would be invest- igated.

He added: "I'm pleased that the north area committee is supporting the proposals."