Plans to protect a former hospital in Burford from redevelopment have been rejected.
The Government's Department of Culture and Media rejected a move by the Victoria Society and the Oxfordshire Architectural and Historical Society to preserve the building, which once housed Burford Hospital, in Sheep Street.
Members of West Oxfordshire District Council's uplands planning sub-committee were told there were no special grounds for protecting the building.
The community hospital closed almost three years ago.
The building dates back to 1902.
Members of the Burford Health Care Fund -- formed from the hospital's comforts and amenities fund -- want to buy the site from its owners, the South West Oxfordshire Primary Care Trust.
The fund wants to preserve the site as a 40-bed private care home and day centre.
A spokesman for the fund, Caroline August, said: "We're still waiting to see the precise plans for the future of the site."
The former hospital is being used as a day centre for elderly people and as a clinic for people with Alzheimer's disease.
The refusal to prevent demolition has removed a stumbling block to the redevelopment of the site in Sheep Street.
Campaigners are now awaiting the next move and the drawing up of plans for a 40 bed care home and day centre by the South West Oxfordshire Primary Care Trust.
The building, closed as a community hospital almost three years ago, dates back to 1902 and retains a strong affection among residents in the town and surrounding villages.
The comforts and amenities fund raised hundreds of thousands of pounds to update facilities there over the years.
The group has now been resurrected as the Burford Health Care Fund which hopes to buy the site and preserve its use as a care centre for the area, rather than see it turned into property development.
Spokesman Caroline August said yesterday: "We are still waiting to see the precise plans for the future of the site. But nothing could have gone ahead until we knew the building was not going to be spot listed for its historic importance."
An application to preserve the building came from the Victoria Society and the Oxfordshire Architectural and Historical Society.
Members of West Oxfordshire District Council's uplands planning sub-committee were told this week that the Government department has said there are no special grounds for protecting it.
The former hospital is presently being used by Age Concern as a day centre for elderly people and as a specal clinic for people with Alzheimer's.
Town Mayor Keith Davies said: "Whatever happens on the site, the biggest problem is going to be car parking.
"Problems with parking in the town are already bad." heading heading heading heading
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