PARISH leaders are fighting a multi-million-pound scheme that aims to ease the shortage of social housing in a New Forest town.

Lymington and Pennington Town Council has lodged an objection to proposals to bulldoze a former school in Cannon Street and replace it with homes.

Members of the council's planning committee concluded that the £2m scheme would be "over dominant and out of character".

In a letter to New Forest District Council which will determine the application, the committee says: "The school building makes a valuable contribution to the character of this part of the town.

"Its historic past should enable it to be protected from demolition."

The letter also criticises the colour of the new homes, some of which will be painted blue or yellow if the scheme is approved.

It claims the proposed development will create extra traffic problems in Cannon Street and North Street, both of which are extremely narrow.

The letter acknowledges that homes for key workers are included in the project but says that type of housing should be provided at other sites such as the old infirmary in nearby Avenue Road.

People living behind the old school have also attacked the scheme.

Brunswick Place resident Phyllis Lemon said the application amounted to "gross overdevelopment" and added: "A less intensive plan for this site, with adequate parking, would be appropriate."

The scheme has been submitted by Swaythling Housing Society which wants to demolish the 100-year-old school and replace it with 20 homes.

The society has asked the district council for consent to build two semi-detached houses and a block of 18 flats on the site.

A society spokesman said: "If we get planning permission we aim to start work next spring and finish by spring 2007. We are acting in partnership with Hampshire County Council which owns the old school. There's a high demand for affordable housing in the area."

Lymington is one of the Forest towns where soaring property prices are preventing many people from getting a foot on the property ladder.

A district council spokesman highlighted the huge demand for social housing, saying more than 1,000 applicants were waiting for a property in the parish.

These included the 560 people who needed a one-bedroom flat, one of whom had been on the housing needs register since 1997.