Kensington Developments wants to build 337 new homes as the second phase of the Lytham Quays development.

The firm's original plan for more than 3,000 homes on the Lytham Quays site were scrapped in 2005 after massive opposition.

But the developer has completed 260 homes, including 16 luxury riverside apartments, on part of the site and now wants to continue its development in the Dock Road and Graving Dock Road area, split between 169 flats, 45 apartments for the elderly, 30 extra care homes for the frail elderly, and 93 family houses.

It also wants to include 44,000 sq.ft. of commercial land.

Twenty per cent of the new homes planned on the 16½-acre site is affordable housing.

But the plans have had a mixed reaction from people living and working nearby.

Mick Taylor, 60, who lives on Preston Road, said: "The only thing is all these homes are being built and we are losing employment. I used to work in Lytham but I have to travel to Preston, which adds an hour."

Carl Scrogham, 29, of Dock Road, said: "I think Lytham might get a bit congested.

"The traffic coming up and down the road is a concern."

Linda Pountley, 49, of Preston Road, who used to work in a factory on Dock Road, said: "I think it is a load of rubbish.

"What has been built on there is a disgrace. There is no character to whatsoever."

Louisa Wood, owner of Woody's Cafe on Preston Road, said: "I think it will improve the area.

"But they need to provide more school places. It is going to be hard for parents."

Malcolm Hawe, chairman of Kensington, believes the development will transform the brownfield site.

He said: "The high quality design will provide a pleasant, safe and secure environment for residents and visitors to enjoy the waterfront.

"The site has suffered from former fragmented land uses."

People can have a look at the new plans at a public exhibition at Rotary House on Pleasant Street, Lytham between 2.30pm and 5pm today (Thursday) and 1pm and 5pm on Friday.