Plans to turn a house in Chadderton into a house of multiple occupation (HMO) have been rejected by Oldham Council, after a councillor warned the scheme could be "a recipe for disaster".

The application for the property on Haigh Lane was put forward by Footlong (UK) Ltd and faced objections from 127 people, as well as from Labour councillor Barbara Brownridge and Reform's Rob Jackson.

Concerns were raised about the impact on the local area and the potential for more cars. One objector described the neighbourhood as "well-established, quiet, family-orientated".

Council officers had recommended the application be refused. While they said the HMO was acceptable under planning rules, with no over-concentration of such properties in the area and the scheme being a reasonable size, they found the loss of 25 sq m of habitat and the lack of any environmental impact assessment meant it should be rejected.

At a meeting, councillors also discussed parking. Councillor Lewis Quigg said the proposed parking space would only fit three cars at best, and that the narrow access lane would not work. Referring to the garage on the site, he said: "You can just about fit two Fiat 500s in that garage and that is at a push. You've got to be a bloody athletic to get out of there."

Officers noted the plans did include an expansion of the parking area.

At the same meeting, councillors rejected another HMO application and narrowly approved a separate planning application from City Shape to build 28 homes off Oldham Road, near Brookdale and Ridgefield Street.

That site has been empty for a number of years, while other homes have been built nearby in an area described as "fast transforming from commercial to residential". It is currently covered by a mix of gravel and plants and has been used for unsanctioned parking, with cars riding the kerb.

A design and access statement for the City Shape application said the plans "will provide high quality homes and meet an identified need within this Failsworth area", with "good amenities and public transport links".

Three people raised concerns that the 14 car-free homes in the development would "displace parking onto surrounding streets and increase congestion". Councillors also raised concerns about existing businesses in the area.

Officers said the unofficial use of the site for car parking could not be used as a reason to refuse the application, and warned that the threshold for refusing applications on highways grounds is very high.

Chris Twist, speaking on behalf of City Shape, said the plans would "feel part of Failsworth and makes a positive contribution to the area". He said the company invests part of its profits into causes such as helping the homeless.

He told councillors: "We have invested considerable time, resources, and costs assessing whether this development site can realistically be developed. A scheme of 28 houses can look fairly straight forward on paper but trust me it isn't."