The collapse of the £10 million sale of the former Seale-Hayne Agricultural College has prompted calls for a deal that better serves local needs.

Buccleuch Property, the Scottish company headed by the 10th Duke of Buccleuch, was selected as the preferred bidder by the University of Plymouth last May.

The firm's plans for the 385-acre college were expected to centre around an upmarket housing development.

At the time Ian Goodwin of the Seale-Hayne Futures Group described the tendering process as 'questionable' and called for the site to retain an educational role.

Buccleuch beat off competition from a number of bidders, including Egregoria, a community-interest company based in Bristol that wanted to create a centre of excellence in sustainable technologies.

Also to lose out was the Dartington-based charity Lifeworks, which was planning to establish a college for disabled children.

Bovey Tracey's Leighton King, who had plans for a Climate Change Solution Centre and a £2million pledge from Devon County Council, was also overlooked.

Now the deal with Buccleuch has foundered.

The firm's agent, Gordon Isgrove, of GVA Grimley, said: 'Market conditions are very difficult, regardless of which sector you're in.

'We haven't concluded a sale with Buccleuch. Naturally we're disappointed and are exploring options and where we go with the University of Plymouth.

'I would hope we'd be in a position to announce something within the next couple of weeks.'

Mayor of Newton Abbot Cllr David Corney-Walker called for a scheme which better reflected local wishes.

'I hope that those who previously expressed interest will be allowed back into the process and that Seale-Hayne has a chance to retain something of its use as an educational establishment,' he said.

'What we need is somebody who has a better knowledge of what people in the area want.'

His thoughts were echoed by former mayor Cllr Keith Smith, who had represented the town council on the futures group.

'This is a golden opportunity for the University of Plymouth to put its money where its mouth is and reach an outcome that is better for the area, and better for Seale-Hayne, than the Buccleuch deal,' he said.

Mr King said he would be 'delighted' if offered another chance to acquire the site.

When his vision was first aired in 2007 Cllr Gordon Hook, Teignbridge Council's green champion, said: 'This is a concept for the century, not just the moment.'