John Prescott was warned last night to keep his "sticky fingers" off the North-East's prime green belt land after he insisted he would press ahead with plans to build thousands of starter homes in the region.

The Deputy Prime Minister unveiled proposals to offer affordable homes for those desperate to get a foot on the property ladder - warning 13 National Health Service owned sites were likely to be developed in the future.

However, the proposals have been attacked by campaigners and MPs who told Mr Prescott's office to keep out of local planning decisions.

There was particular anger over the future of Prudhoe Hospital, which is set in almost 400 acres of green belt land, after ministers revealed yesterday it was part of nationwide plans to build 15,000 first-time buyer properties over the next five years.

Other sites identified in the Government's report yesterday include: Birney Hill Farm near Ponteland; Hartlepool General Hospital; Killingworth Stores; Maiden Law Hospital in Durham; Homelands Hospital in Crook; St George's Hospital in Morpeth; Aycliffe Hospital; Stannington Children's Hospital; Cherry Knowle Hospital; Ashington General Hospital; Shotley Bridge Hospital in Consett and Tindale Crescent in Bishop Auckland.

The scheme could result in around 2,000 new homes in the North-East.

But last night Mr Prescott's suggestion to develop the public sector land, which includes more than 100 NHS sites nationwide, for first-time buyers and key workers was attacked for its lack of consultation.

Hexham Tory MP Peter Atkinson, whose constituency includes Prudhoe, said yesterday's announcement showed it was time Mr Prescott stopped interfering, telling The Journal: "He should keep his sticky fingers out and let the local people decide what they want.

"John Prescott is always banging on about regionalism. He should let local people make their own decisions in this case."

The announcement was part of the Government's five-year plan for housing, and follows massive concern over the declining number of first-time buyers making it on to the property ladder.

Mr Prescott told MPs: "This five-year plan is the next step in creating sustainable communities. Mixed use, mixed tenures, designed to the highest standards, using less land to build more homes.

"It means more homes and more home ownership, with extra help for first-time buyers."

There has been no consultation by Mr Prescott's office on their ideas for Prudhoe despite local councillors and the regional development agency One NorthEast calling for the site to be a business park.

Tynedale Council, Northumberland County Council and ONE say Prudhoe is of "strategic importance", arguing it should have offices and even a hotel on site, to help balance the loss of jobs when the hospital finally closes down in 2008.

Campaigners are eager to ensure the hospital's Grade II listed garden site is maintained.

Mr Atkinson added: "The Government has not bothered to consult on their plans at all.

"The local people and planners had already come up with a good scheme that saw some upmarket housing being built, so they could keep the golf course and the green space, so why should John Prescott interfere when there really isn't a shortage of affordable homes in Prudhoe?"

Local councillor Tony Reid warned extra housing could swamp the town.

"Our infrastructure would be stretched, there's no doubt about that," he said.

"We already have a problem with dentists and the schools would have difficulty absorbing lots more people."

In total, the Government has identified 101 NHS sites as surplus to requirements, with many expected to become first-time buyer housing developments. Most sites are found in the South-East (33), with the North-East and South-West the two regions with the next highest number of possible developments.

English Partnerships will legally acquire the NHS sites at the end of March before launching the first-time buyer project.

The Journal: Today's Voice of the North

Page 2: Housing plans