Judges have dealt another blow to plans for a major apartment block on Newcastle’s Quayside, after siding with council chiefs and neighbours fighting the development.

In the latest chapter in a long-running saga over the contentious Plot 12 site, the Court of Appeal has dismissed a developer’s bid to secure approval for nearly 300 new flats.

The proposals, which critics have branded “monolithic”, have been the subject of a prolonged legal fight since first being rejected by Newcastle City Council just over two years ago.

It has been claimed that the 289-flat complex, which would sit on a troublesome patch of land which has lain empty for decades, would block the view to and from the historic St Ann’s Church and would “decimate” the living conditions of its neighbours at the St Ann’s Quay building.

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While developers Packaged Living and Robertson Property successfully challenged the city council’s initial decision at a public inquiry in March 2022, that was quashed by a High Court ruling last November.

The applicants then took the battle to the Court of Appeal, but have now seen their latest attempt to salvage the multi-million pound proposals fail.

Judges have upheld the High Court’s view that planning inspector Claire Searson made a legal error in her conclusions from the inquiry by not giving sufficient weight to the harm that would be caused to the Grade I listed church.

Having seen a second court judgement go against them, it remains to be seen what the developers’ next move will be.

The plans could be subject to a repeat of last year’s public inquiry in front of a new inspector, redrawn and submitted from scratch as a new planning application, or abandoned entirely.

A relieved Louise Richley, a director of the St Ann’s Quay building’s management company, thanked the council for having “done the right thing in defending that plot and defending the future of the Quayside” – and expressed hopes that a “more reasonable” vision to finally redevelop Plot 12 could now be produced.

She said: “This scheme was universally rejected not just by the council but by every single neighbour of the development. We genuinely hope this is the end of it now and the developer will go back to the drawing board and look at the whole thing again.

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“We are not against development on that plot – it just has to be really carefully considered moving forward, based on the heritage implications and the fact that St Ann’s Church is grade I listed.

“There are obviously a lot of constraints with the site, but hopefully next time that will be given much more consideration.”

Dismissing the developers’ appeal in a ruling issued on Friday, Senior President of Tribunals Sir Keith Lindblom concluded that there was a “deficiency” in the planning inspector’s verdict and “a real uncertainty about what she meant”.

He added that it was “not impossible to foresee a different outcome” if a second public inquiry were to be held.

Lord Justice Lewis said: “The reasons do not adequately explain the inspector’s conclusion on that issue [the impact on St Ann’s Church] and leave a genuine and substantial doubt as to whether or not the inspector had taken a legally irrelevant consideration into account. For that reason, I agree that the appeal should be dismissed.”

A council spokesperson said: “We are pleased that the Court of Appeal has dismissed the developer’s appeal against the High Court decision in the council’s favour for Plot 12, meaning the judgement of the High Court still stands.”

Packaged Living has been contacted for a comment.