DEVELOPER Tindale has ended its long standing interest in buying a family farm described by residents as an eyesore and health hazard.

The company had hoped to create 600 new homes on the 65 acre West Musgrave site in St Helen Auckland, County Durham, which was subject to a legal tug-of-war over its ownership.

But after having a £3.5m offer for the land rejected it has now walked away.

Residents have urged action to clean up the site, which is in Louisa Terrace, and the news is likely to come as a blow.

William Rea, director of Rea Estates, which is marketing the land, said: “They [Tindale] had an offer which hasn’t been accepted.

“It was lower than the two previous ones they made.”

Mr Rea said his company was negotiating with another interested party in order to get a deal done.

He said: “The client is aware there is no planning permission, but is happy to jump the hurdles to try and obtain that.

“He wants to complete as quick as possible, but there are quite a few legal things to sort out.”

Mr Rea denied Tindale’s claims that waste buried on the land was toxic.

He said: “The Environment Agency have been over the land with a spade and found no evidence of toxic waste. There is some asbestos roofing which will have to be disposed of in a sealed skip.”

In an e-mail to The Northern Echo, Mark Rowlings, a spokesman for Tindale, said it had formally withdrawn its offer, which he insisted was “well above market value”.

Mr Rowlings gave a number of reasons for Northern Ireland-based Tindale ending its interest in the site, including the potential for planning consent.

He said: “I have identified and purchased some alternative sites on behalf of my employers, in another county, which will take us approximately 12 months to develop.

“This ties up our planning and development team up, leaving little room for further efforts on behalf of West Musgrave.”

In September a county court judge ruled that vacant possession of the farm should be granted to Christopher Shepherd and his sister Joanne Long.

Mr Shepherd told the Echo some progress had been made with the sale of the land and he hoped a deal could be struck by Christmas.

He also confirmed he was being pursued for costs by a representative of Tindale and was “absolutely” disputing a bankruptcy action brought against him by a third party company.