The controversial decision to close a popular Oxford guest house is to be re-examined by city councillors.

On Friday, the authority's finance and performance scrutiny committee will reconsider last year's decision by the executive board to sell the Walton Street Guest House.

But council leader Cllr Corinna Redman warned that the committee had no power to overturn the decision.

The guest house became the subject of a row, following the failure of its managers to renew a 15-year lease.

When Margie and Patrick Durrant failed to renegotiate their lease before the required deadline, council leaders placed the property on a "for sale" list.

Now the finance scrutiny committee has "called in" the executive board's decision.

Labour councillor Susan Brown, who is on the committee, said: "A number of Labour councillors have very grave concerns about the way this matter was handled.

"If we find there was something wrong with the decision-making process, we could ask the executive board to reconsider."

Cllr Redman (Lib Dem) said the scrutiny committee's involvement would not change the decision to sell the property.

She said: "As far as I am aware, the property is on the market, but it has not been sold yet."

The executive board heard that a property disposal programme totalling £8m was now well under way.

Mr Durrant, who was not available for comment, is still hoping that he will not have to leave.