RESIDENTS are fuming after developers who tried to turn an old mental hospital into digs for almost 400 students returned with “very similar” proposals.

In July, Peveril Securities’ £17m plans to transform the former County Hospital, off North Road, Durham, into privately-run accommodation for 398 students were unanimously thrown out by a council planning committee.

Now the firm has returned with a slightly scaled-back design, for 364 bedrooms.

The original Victorian hospital would be converted and extended, later extensions demolished and two new blocks built comprising a total of 282 flats.

The height of the scheme has been reduced by one storey to seven and a student “hub” has been moved across the site.

A Peveril spokesman said the scale and massing had been reduced and the reasons for July’s decision had been addressed.

However, Jackie Levitas, of nearby Waddington Street, accused the firm of rearranging the deckchairs on the Titanic.

“It’s an insult. We all hoped they would go away and design something attractive to fit with the environment and reflect the other needs of the city.

“They’re not listening to public opinion. They’re just trying to maximise profit.”

Roger Cornwell, chair of Crossgate Community Partnership, said: “It seems that the developers have made the minimum of changes in the hope this can get past the planning committee this time round.

“We remain convinced that this is not the right site for student accommodation.”

Durham City MP Roberta Blackman-Woods said the proposals were “pretty horrific” and Peveril had refused to engage with public concerns since July’s vote and had made only “very marginal changes”, begrudgingly.

The MP has called a public meeting to discuss the proposals, along with plans to build student accommodation at lower Claypath and redevelop The Gates shopping centre. This will be held at Durham Town Hall on Thursday, January 22, at 6pm.

Peveril said its accommodation would be managed by the Victoria Hall company and it hoped to have it ready for September 2016.

The company spokesman said: “It remains the case that well over half of the students in Durham do not have the opportunity to live in purpose-built accommodation.

“Our new scheme will provide a real alternative to students who have to occupy shared houses in the city.”

However, residents say Durham is facing a glut of purpose-built student accommodation, with consent granted for an extra 2,000 beds and another 1,400 in the pipeline.

Further information on the County Hospital application can be found online at durham.gov.uk/planning, using the reference DM/14/03694/FPA. Consultation has begun and runs until Thursday, January 8.

A decision is expected to be taken by a council planning committee in the spring.