PLANS to convert a former pub into three homes have been refused on appeal.

The scheme for the now-closed Nag’s Head pub near Yorkley would result in the loss of a “community asset”, planning inspector Tamzin Law concluded.

The company behind the project, Portsmouth-based Lydney Developments Ltd, had argued the 235-year-old pub was not commercially viable.

The appeal was lodged after planning permission was refused by the Forest Council in November last year.

Council planning officials said of it: “Whilst of a relatively plain vernacular architectural appearance, the age and relatively unaltered appearance of the building results in it holding some historic interest”.

The proposal would retain the full structure of the pub and all the outbuildings.

The conversion would see the construction of homes of two, three and four bedrooms.

A viability study commissioned by the applicant looked at the costs of refurbishing the building to a modern standard.

Ms Law said that while the study provided the number of barrels sold over previous years, no past accounts or detailed financial evidence of the actual operation of the facility had been submitted to demonstrate that it is no longer financially viable.

The inspector said she had taken account of a number of reasons, which led the applicants to conclude that the business was no longer viable, including renovation costs.

The company also that substantial works would be required in order to reconfigure and expand the premises to offer the scale of dining facilities, including a modern commercial kitchen.

In response, the inspector said: “…these along with the other assertions made by the appellant, do not amount to substantive evidence to demonstrate that the public house is not viable or cannot be made so.”

Ms Law concluded: “For the above reasons, in the absence of detailed financial information specifically related to the operation of the public house I conclude that the proposed development would result in the unjustified loss of a community asset.”

She said the scheme would contravene council policies that seek to retain community facilities.

The other main issues were the effects of the development on the character and appearance of the area, and on bats and biodiversity gain.

Ms Law said the site on the Oldcroft Road was of “a rural character”.

She said the main parties in the appeal agreed the building should be considered a “non-designated heritage asset” (NDHA).

Ms Law said: “I find its significance to derive from its local historic and architectural interest as a good example of a relatively unaltered rural public house.”

The council’s main concern were the loss of the pub and the construction of a car park in what was a beer garden.

The inspector said she did not think the development would harm the NDHA or its setting.

Ms Law also accepted that the development “would avoid or adequately mitigate unacceptable harm to bats.”

She also said that it would be in line with policies that seek to ensure a minimum gain of 10 per cent in biodiversity.