A BID by the health trust to build four semi-detached houses on the Grayshott Clinic site has failed at appeal.

The clinic was originally built for the village in 1920 with the money raised through public subscription.

Surrey Primary Care Trust (PCT) wanted to demolish the building, at the corner of Beach Hanger Road and School Road, to build the new homes, and a public enquiry was held at Grayshott Village Hall earlier this month.

A Surrey PCT spokesman said it had "a duty to maximise the value of a site" after it was granted planning permission to build one detached house and two semi-detached homes on the site in March this year.

But a government planning inspector said, in his decision on the enquiry, the proposal for four homes would be detrimental to the character and appearance of the area, contrary to planning policies and to the Grayshott Village Design Statement.

The clinic has been redundant since community nursing teams moved to a GP surgery, a weekly child health clinic relocated to Grayshott School, health visitors moved their headquarters to Haslemere Hospital, and new regulations meant podiatry services also being relocated to Haslemere Hospital.

The cost of meeting improvements to comply with the Disability Discrimination Act, estimated at £44,000 along with running costs of £36,000 a year, were other factors in the decision to close the clinic.

Jamie Andrews, head of estates planning at Surrey PCT, said: "Grayshott Clinic was not fit for purpose as it failed to comply with the necessary standards all NHS buildings must meet, including disability access requirements.

"All community services based at the clinic were relocated to nearby sites.

"Even though the clinic has been closed for some time we are still incurring considerable running costs on a daily basis."

He continued: "As the land is no longer required, Surrey PCT is now looking to sell the site. Under the NHS Estate Code the PCT has a duty to maximise the value of a site.

"In the current financial climate, the PCT would have achieved the best value for money if it had planning permission for four houses.

"While we understand there have been some local concerns about the planning application, as an NHS organisation we have a duty to ensure we achieve value for money in every area, including the sale of estates, so we can ensure continued high quality patient care."

Phil Bates of Grayshott Society told the Herald: "I am really pleased and I'm sure neighbours will be glad to hear this news. This was a common sense decision.

"Quite frankly we are surprised the PCT pushed for four instead of the three house units, which they had already got permission for, as not one authority, neighbour or group agreed with four houses as this was an 'urban design' over-development on this small plot of land.

"Some will argue that three units is still too many."

Mr Bates has hopes that the building will be saved from demolition.

He said: "Perhaps the PCT will go one step further and reconsider keeping the clinic and not demolishing it, either selling it as a single residence or converting it into two units, as the building is sound and well built, has a history to it and was originally paid for by public subscription. The funds to build it being raised by village folk, which was a major achievement at the time.

"It was donated by Grayshott Village to the National Health Authority in the 1950s."

Mr Bates added: "It's worth remembering at this time of the year what is engraved on the stone plaque set into the wall of the clinic," which reads 'As a peace memorial this cottage was erected for the district nurse by the inhabitants of Grayshott AD1920'."