Grosvenor Homes hopes to develop a mixture of houses, flats and bungalows with a 14-space car park on the site of Ivy House, in Railway Road, but there are fears it could become a "ghetto".

The site, close to the junction with Bennett Street, has been subject to a number of failed planning applications in the past, most recently a proposal to develop 17 homes two years ago.

Grosvenor Homes is also seeking permission to demolish the dilapidated Ivy House, which has suffered structural problems, and a former slaughterhouse building, sparking objections from the community and experts alike.

West Norfolk Council has been recommended to refuse the application and has received seven letters of objection from residents, including two from the Downham Amenity Society.

They fear the loss of the slaughterhouse building would adversely affect the appearance of the conservation area, a concern echoed by the council's conservation officer.

The report said: "The retention of the former slaughterhouse building is important to the street scene and is of local historical interest. The development overall, with its large parking area, remains dense and alien to the character of the conservation area."

Residents have raised a number of other concerns, suggesting the plans represent a "massive over-development" of the site, which could well become a "ghetto" of very small buildings.

Kathy Mellish, a former borough mayor and ward member for Downham, has also objected to the plans and suggested an alleyway next to the neighbouring property could become "a dangerous and intimidating area".

The 2007 application was refused and dismissed on appeal by the Planning Inspectorate. The Planning Inspector raised concerns about the intensity of the development, a disproportionately larger and taller block of flats included in the plans and the large area given over to parking, compared to the small amenity and garden areas.

A report supporting the latest application said it had sought to overcome the issues raised two years ago, proposing a smaller rear block and greater parking and amenity space.

The report said reclaimed materials would be used to build the home, including, where possible, material from the demolition of the house and slaughterhouse.

The Highways Authority, Environment Agency, police and town council have raised no objections. But in a report to the board, officers said: "The proposed development, through elements of its scale and layout represents an isolated pocket of over-intensive development, which is out of character with this part of Downham Conservation Area. The scheme proposes the loss of an important building."

The application is on the development control board agenda for Monday.