A planning application to replace a car repair business with a development including shops, flats and a restaurant in South Norwood has been refused.

Campaigners against the redevelopment were thrilled with the refusal but are concerned a future appeal may be successful.

The Planning Inspectorate refused Greathall Ltd's appeal because the new building would dominate the historic Stanley workshop next door, harming the appearance of the South Norwood conservation area.

The ventilation system was also attached to the outside of the development rather than inside.

The plans would have demolished Autoclutch, a car repair garage and replaced existing single storey buildings with a three or four storey building.

Owner Richard Hough said: “I'm obviously happy that I can carry on trading but it's what's round the corner that I'm worried about.”

Campaigners have been battling the plans since 2002 with last week's decision following two previous hearings in 2004 and 2007, which were also dismissed on similar grounds.

Mr Hough said: “This isn't the end of it. Public opinion is increasing everyday.”

Last month's hearing was keenly supported by local councillors, residents and action groups like the Norwood Society, giving a clear indication of the strength of local feeling against the proposals.

The Norwood Society's Chairman Eric Kings said: “We're delighted with the result but not the grounds for refusal.”

Autoclutch was commended by the planning inspector for the service it provides and the training and work experience it has offered to youngsters over many years.

Mr Kings said: “It would be very sad for him to have to move away and lose what he's given to the community.”

Cabinet member for planning Jason Perry said: “I hope that inspectors will adopt a similar line when handling other appeals in Croydon given that in the past not all seem to have taken account of the depth of local feeling on redevelopment proposals affecting the character of established neighbourhoods.”

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