Plans to build student flats on a disputed plot of land in north Kingston have been thrown into question after the owners applied to build a residential scheme on the site as well.

Land aquisition firm Goldcrest, which already has permission to demolish the Kingsgate Business Centre and build 210 student flats, has now applied under permitted development rights to convert the existing office block into 29 residential units.

And councillors have admitted they have no idea what the company now plans for the land, which Kingston Council had once earmarked as a potential site for a much needed primary school.

Kingston’s Liberal Democrat leader Liz Green said: “It does not necessarily mean there won’t be student accommodation – who knows.

“We can speculate, but none of us know what they are thinking or planning. Only they can say what they are thinking and what they plan to do.”

Conservative Councillor David Cunningham, lead member for environment and transport, said: “They can convert the office into residential flats – I don’t know how they would square that with the planning permission that they already have.

“I don’t want to speculate. You should ask them what they want to do.”

Goldcrest had not responded to requests for comment as the Surrey Comet went to press.

The Kingsgate Business Centre is a key area of the north Kingston development brief, which also includes the former gas holders site in Sury Basin and the council-owned Canbury Place car park.

Originally Goldcrest had been willing to swap the site for the car park, but after councillors stalled on the deal, the company successfully appealed to the Planning Inspectorate to build student flats at Kingsgate on the grounds of non-determination.

A consultation period for residents to comment on the new residential development will be open until February 27.

New laws introduced by Communities Secretary Eric Pickles in May 2013 mean that developers do not currently have to apply for full planning permission to convert office blocks into flats, and can proceed under permitted development rights.

The loophole has seen Kingston Council inundated with change of use schemes since May 2013, and has been able to do little about them.

Last week councillors agreed to withdraw permitted development rights for change of use from office to residential without planning permission.

The powers come into effect on October 1.