MEMBERS of one of York's most prominent families - the Shepherd building tycoons - are embroiled in an amazing dispute over a planning application.

Paul Shepherd, the former head of Shepherd Building Group, wants to build a large new house, but two neighbours are objecting...and they are both his relatives.

Mr Shepherd's cousin, Patrick Shepherd, and his aunt, Sylvia Shepherd, have both complained strongly in a series of letters to York council about a proposed two-storey detached property in an exclusive area of the city.

Paul Shepherd plans to build the new house at St Edward's Close, York, on prime land overlooking York Racecourse.

But the grassy area he wants to use - next door but one to his large house - is sandwiched between Sylvia Shepherd and Patrick Shepherd's luxury homes.

Now the bid has been stalled, after councillors requested that the plans be scaled down.

The objectors claimed the proposed new building is too big, and that it would damage the area's character and affect their privacy.

The planning wrangle follows a family dispute earlier this year that rocked the York-based Shepherd Building Group, one of Britain's biggest private firms which employs nearly 4,000 people and has a £500 million-plus turnover.

Former chairman Paul Shepherd, 58, the eldest of three Shepherd brothers involved in the business, said he was sacked as chief executive of the construction division.

In November 2002 he threatened to sue the company for unfair and wrongful dismissal. That row was settled out of court this January.

It began when the company's board voted to replace Paul Shepherd as chairman, a post he had held following the retirement and subsequent death of his uncle, Colin Shepherd.

But Paul Shepherd still lives in the same street as Sylvia, widow of the late Colin Shepherd, former head of the Shepherd empire, and Patrick, deputy chairman of Shepherd Building Group.

The proposed two-storey property would be substantial in size and would include a triple garage and a self-contained two-bedroom lodge at the front.

But at least three sets of changes have been made, after complaints from the neighbours living within a 200-yard walk of the applicant.

In six letters to the council, both Patrick and Sylvia Shepherd call for the plans to be refused.

Sylvia Shepherd, in a letter dated September 7, says she continues to be "most concerned about the sheer size of the house".

Patrick Shepherd, also in a letter dated September 7, says the new house would have a "mass and character quite out of proportion with the other dwellings".

Paul, Patrick and Sylvia Shepherd all declined to comment on the application.

Paul Shepherd's planning agent, David Chapman Associates, confirmed it was his planning application but declined to comment further.

A spokesman for Shepherd Building Group also declined to comment on the application.

The application went before planners last month. It was recommended for approval, but was deferred so changes could be considered.

It is due to be considered again on October 21, and planning officers confirmed a revised set of plans had been received on Thursday reducing the size of the development. Letters have been sent to the two objectors notifying them of changes.

Updated: 10:16 Monday, October 11, 2004