Campaigners fighting a multi-million pound housing development have announced a plan to buy the land themselves.

Homes, offices and shops could all be built in the middle of Lewes under proposals put forward by developer Angel Properties.

But opponents of the plan, including residents group Phoenix Action, believe the district council is rushing through the scheme and said it should wait until at least 2008 to prevent the £200 million being spent on the work being wasted.

Phoenix Action is planning to meet with residents' groups on April 19 to discuss a non-profit community bid for the land.

John Stockdale, chairman of Phoenix Action, said: "A number of groups are looking to see if we can get some sort of collective together to organise a community buy-out which would mean the site would not have to be developed as is planned at the moment.

"It is a very difficult site. It has got lots of contamination and it flooded badly. There would also be serious transport problems because it is effectively a cul-de-sac and sticking housing down there would cause problems with traffic in a town with a medieval road system."

The plans outlined by the council and developers include 800 homes, a three-screen cinema with 400-space car park, a footbridge, art gallery and restaurants in the Phoenix quarter of Lewes and the area around North Street.

But there are fears the project could irreversibly damage the area's appearance and put Lewes further at risk from flooding.

The North Street and Phoenix quarter area of Lewes was developed in the Fifties and Sixties for factories and warehouses on the site of the former Phoenix Iron Works and adjacent riverside land.

The area was badly affected by flooding in October 2000. This, together with the age and deteriorating condition of some buildings on the site, has led the district council to say it "requires a fresh look at its future role".

Mr Stockdale said: "We are quite hopeful of getting some sort of scheme together.

"I do not think anyone wants to leave the land the way it is at the moment but we do not want to rush into anything while the whole planning system is up in the air.

"We do not want to see it over-developed because it is not in keeping with the town."