One of the region's leading housing developers believes it is pointing the way for businesses wanting to reinvest by selling their premises on brown field sites.

Russell Armer Homes have helped one company to realise its ambitions to expand on a new site and is now hoping to repeat the exercise with a second firm.

Tom Lambert, owner of Daleswear Limited, was able to fund much larger, two-storey premises costing £1 million, including a store, workshop and office, on the A65 in Ingleton after selling his old factory site on Laundry Lane in the town to Kendal-based Russell Armer Homes.

And Builder Supply (Kendal) is hoping to follow a similar route by selling its builders' yard and plumbing depot off Ann Street.

Russell Armer Homes have submitted plans to South Lakeland District Council to build a total of 21 houses and apartments some of them earmarked as affordable homes on the site.

If planners back the detailed application, it will enable Builders Supply to move all its operations on to a single site at the former Pye Motor premises on the Mintsfeet industrial estate. Pye Motors has just moved to new premises on Shap Road, near Kendal Rugby Club.

With the shortage of new housing sites in the area becoming increasingly acute, Russell Armer Homes believes redeveloping existing premises is the way forward. "Selling key brown field sites is an ideal way for many businesses to realise essential capital," said managing director Martyn Nicholson.

"Craven District Council has been very helpful and has obviously realised the benefit of the plan for both Daleswear and the local housing market.

"If other councils and planning authorities were to see this as an example of good practice', then other rural businesses would be able to reinvest for a healthier, brighter future."

In Daleswear's case, the freeing up of capital from its Laundry Lane site will enable it to double the size of its workforce, boost productivity and move to a more prominent roadside location.

"It was a real plus being able to sell the old site," said Mr Lambert. "We weren't able to realise our full production potential there.

"Being able to invest in a new, purpose-built facility has meant all the difference in the world for Daleswear as a company."

Russell Armer Homes plan to build 16 homes in Ingleton, five of which are three and four-bed town houses and the rest are two-bed apartments. Work is due to start in 12 months' time and will take about a year to complete.

Meanwhile, Mr Nicholson said the proposed relocation by Builders Supply (Kendal) would not only create a site for new housing, but would solve traffic problems on Ann Street caused by delivery and other vehicles using the builders' merchants.

A statement accompanying the planning application said if Builders Supply (Kendal) could move its depot operation at Ann Street and showrooms on Wildman Street to a single site at Mintsfeet, the firm expected to create a further ten jobs as a result of the expansion.

Russell Armer has played a pivotal role in the proposed changes, having at various stages acquired both the old Pye Motors site on Mintsfeet and the former Milk Marketing Board site near the rugby club.