The building in Waterloo Street is probably best known as being the foundry of the former Peatsfield Engineering, casting agricultural machinery but has also, over the years been a bottling plant, a hostel for Italian prisoners of war during the Second World War, a club house for the local Young Farmers, an undertaker and, latterly, garages.

It is also said that Wellington's famous horse 'Copenhagen', believed by some to have been bred in Market Rasen, was stabled here - hence the name of the street being Waterloo Street.

Local builder Martin Merrigan of Mal Building Contractors of Gallamore Lane, said he hoped the new houses would be bought by local people.

"All the original features are being kept," he said. "Bat slits will be provided as there have been Pipistrel bats there, and there will be provision for migrating swifts."

Martin hopes that planning permisison will be granted by the end of October and that he will be able to start work before the end of the year.