Estate agents say there is a big demand for new houses in Berwick

New guidelines state no more than 30 new homes a year can be built in the whole of Berwick borough - which also includes the popular towns of Seahouses, Belford and Wooler.

The new government ruling cuts the area's housing allocation by more than half.

Councillors, estate agents, builders and other businesses all say there is a desperate need for new housing.

They predict the borough's economy will suffer as a result of the restrictions.

Town problems

Councillor George Miller, chairman of planning at Northumberland County Council, said: "It seems a great nonsense. We are talking about allocation in the whole borough - only 30 houses a year.

"The government just don't seem to know where Berwick is and what Berwick's problems are.

"This is the same government who are saying close schools because you are short of pupils, close your post office, your shops are under threat.

"Land is one thing we have plenty of in Berwick. It is people we are short of."

Second homes

But Nick Best, from the Campaign to Protect Rural England said any new homes would be used by city commuters.

He said: "This is not central government, it is the county council and the regional assembly setting these figures and Berwick have had plenty say in the decision.

"The council have set these figures because they want to maintain the population.

"You can't set regeneration going just by building houses.

"If you build executive house you will just get people commuting to Edinburgh or Newcastle... or just get people buying second homes."