Southern Rail has been forced to pull down and rebuild part of a train servicing depot put up without planning permission, following a big campaign by local residents and councillors.

The demolition of a 300 metre long canopy at Streatham Hill sidings, looming over neighbouring homes, marks the end of an eight-year planning battle with Lambeth Council in south London.

A planning inquiry held in 2010 resulted in a compromise between the two sides after the Council had taken enforcement action against erection of three canopies. The action was withdrawn on the basis that the canopy nearest the homes would be pulled down and replaced by a low-level service rack.

The controversial development sparked wide interest, not least within the railway industry anxiously watching what precedents might be set.

The Council’s planning committee ruled that the development begun in 2005 did not benefit from permitted development rights as it was not necessary and the activities of sand and water, cleaning and toilet clearance could be carried out without the need for the canopies.

After the committee finally voted to enforce its decision, the railway company appealed triggering the planning inquiry. At the end of the two-week inquiry the two sides asked that the inspector’s decision should be held over to allow a deal to be reached. His findings have never been disclosed.

Streatham Hill Liberal Democrat councillor Jeremy Clyne, one of those leading the campaign with residents against the development, commented: “This is a major victory for local residents and should be a lesson to railway companies and others who think they can ride rough shod over the interests and views of those affected. The residents were told their campaign would be futile, but refused to give up.

“It is however only a compromise solution, and the development should never have been built in the first place. Residents at one end of the street affected do not benefit at all.”

Fellow Streatham Hill councillor Ashley Lumsden added: “The whole development has been outrageous. The railway operator was not able to point to a single other location where a depot has been developed in this way, so close to residential properties. A hundred or so homes have been affected.”

The issue of noise insulation also remains unresolved. As part of a Section 106 planning deal accompanying planning permission for the two remaining canopies to remain, it was agreed that £650,000 would be paid to the council to fund window insulation in the street affected, Sternhold Avenue. To date it is not clear whether any of this money is going to be paid out, or whether it is going to be returned to the railway operator.

Based on information supplied by Jeremy Clyne.