ELLESMERE Port and Neston could have an over-supply of 300 dwellings by 2011, a report reveals.

The borough council says it has introduced a 'closer approach' to releasing land for housing which allows permission but directs development to brownfield sites in both towns where regeneration is required.

Brownfield sites are those which have previously been built-on, as opposed to green belt sites which are safeguarded from development by law.

In April this year, there were planning permissions for 1,367 dwellings, most of which were in the north of the borough, a report to the council's planning committee said.

During 2005/06, a total of 284 dwellings were completed, slightly fewer than in the previous 12 months but above the average for recent years.

Most of these were on the former Thermal Ceramics site on Liverpool Road in Neston and Berwick Road in Little Sutton, the committee was told.

The Thermal Ceramics site is the largest brownfield development in the district, with permission for 235 houses, 97 of which were completed in 2005/06.

And development is nearing the end in Berwick Road, with 50 completions in the last 12 months.

On both sites, 25% of the dwellings are affordable.

Meanwhile, a 1.2 hectare green field site north of the brook on Moorside Lane, Neston, has been allocated for 25 homes. No planning permission has yet been obtained.

And at Deeside School on Mellock Lane, Neston, permission has been given for 22 dwellings, subject to a legal agreement.

Councillors heard that draft regional planning guidance, if approved, could allow 400 new homes to be built each year in the entire district.