THE owner of a former nursing home has lost his appeal to convert the Victorian building into residential flats.

St Peter's House, in Gainford, between Darlington and Barnard Castle, was a nursing home for several decades before its private owner decided to sell the property.

The new owners converted the three-storey building into flats, but planning officers at Teesdale District Council said no authorisation had been granted to convert the property.

They also stated that the site should be used as office space, and not residential apartments.

The prominent building could now remain unused for months after an appeal against the refusal of permission for the flats scheme was turned down by planning inspector John Braithwaite.

The new owner, Jonathan Parsons, said yesterday that it was unlikely that he would be able to lease the property to any local businesses.

He said: "At the moment, the building is just standing vacant, and I'm sure the people of Gainford would rather it was put to some use.

"I don't know whether any businesses will be willing to take office space at the site, so I'm in a bit of a difficult position. I think the planning authority has been somewhat unrealistic and to some extent unreasonable, but I'll just have to keep advertising it as office space."

Mr Braithwaite, an inspector appointed for the Secretary of State for Transport, Local Government and the Regions, said the building should be used as office space.

He said: "The proposed residential use of the building would be contrary to the allocated industrial use of St Peter's and would result in the loss of employment generating opportunities in the Gainford area."