More homes are on the way for central Abingdon after a planning inspector stepped in and over-ruled a council's decision to block a development.

A major scheme to revamp the Thames View business estate off Audlett Drive and build nearly 200 homes has won approval.

Both the Vale of White Horse District Council and the town council rejected the plans, arguing that there would be more homes at the expense of space for businesses.

The developers appealed and after a public inquiry won the argument. The estate near the Abbey Grounds is to be rebuilt with a mixed development of new business units, houses and flats.

The former Burgess printworks, Bezier House, and 11 small business units will be demolished but the Abbey Press building will stay and new commercial floorspace in a single unit will be constructed.

The principal planning advisor to Kimberley Developments Nigel Moor said: "We are delighted to have won our case. It will be a mixed development of homes and business on a brownfield site. Forty homes will be built for affordable housing.

"We will refurbish adjoining business units in Audlett Drive so existing business can relocate and won't have to leave Abingdon. There will be no loss of business space. The Bezier building comprising 117,000 sq ft was purpose built and had been empty for three years." In her report, inquiry inspector Elizabeth Fieldhouse said the key issue was whether the development would lead to a loss of key employment land and cause harm to the economic health and vitality of Abingdon.

She said: "Government advice is that local authorities should allow redundant commercial buildings and land to be used for housing or mixed-use development. There is a healthy demand for small business units in Abingdon.

"I do not consider that the loss of a limited amount of industrial floorspace would necessarily increase private car use or affect the economic health of Abingdon."

Kimberley will now draw up detailed proposals for the council to consider. It hopes to start work on the project next summer.

District council leader Jerry Patterson said: "In refusing permission the council was following the agreed Local Plan to protect employment areas.

"I am disappointed that the planning Inspector did not agree, but I think we did the right thing."

The Thames View development is the latest in a series of housing schemes in the area. KingsOak has started work on 99 houses and flats on the site of the old Penlon factory. The same company is also planning to build 49 homes on the old gas depot land.

Persimmon Homes is building 90 houses and flats on the site of the old Simpsons Malt building and petrol filling station.

And on what was once the old Red Lion pub and adjoining land Cranbourne Homes is putting up 20 homes.