Two new homes with harbourfront swimming pools have been approved for construction in front of the historic home, Elaine. The council has also approved plans to convert the former stables into a residence.

The council has deferred any decision on plans to develop the existing house.

Elaine has been on the market for more than 12 months, and though owner John B Fairfax has said he would prefer to sell the property in one line, he has acknowledged that it might be time for the site to be owned by more than one family.

The 6,986sqm site was subdivided into six lots in 1996, but the current proposal consolidates the six lots into four.

Elaine has been in the Fairfax family for nearly 125 years.