Work has been halted on a building site in a conservation area where planners say developers have begun a conversion without planning consent.

Morley-based developers KHD could face a fine of up to £20,000 if it continues work on a building in Kirkgate, Otley, after being issued a temporary stop notice by Leeds City Council.

Builders demolished three small cottages in a courtyard next to Whitakers pub on public safety grounds but they have continued to start work on creating four flats without being give the green light by the council.

Now the council has halted work following the installation of new floors, internal walls and drainage.

Plans have been submitted, but are only in the consultation stage and members of the public have been invited to view them.

Councillor Andrew Carter, deputy leader and executive member responsible for development and regeneration at Leeds City Council, said: "We will not tolerate developers who start work in anticipation that their application will be approved as submitted, with no regard to public comment, the views of the council and other interested parties.

"If the work does not stop I would expect officers to go for the maximum financial penalties possible."

But KHD director, Kevin Drinkhill, said work had only been done to make the building safe, as agreed by planners. He added no further work would take place before he had been given the green light.