A council leader has spoken of his dismay after retirement home developers won a controversial town centre planning appeal.

Dozens of flats for the frail elderly can now be built in Union Place, Worthing, after the shock decision.

But coun Keith Mercer, leader of the borough council, who famously said the town needed sheltered housing on the site "like a hole in the head", said he was appalled.

He said it threatened to derail a masterplan for the multi-million pound redevelopment of the town centre and seafront.

McCarthy and Stone must now start work on the complex, on the site of Northbrook College's art college, within three years.

The decision by planning inspector John Papworth means proceeds from the sale of the land could be ploughed into the construction of a new college campus in Broadwater Road, Worthing.

But conservationists were dismayed by the decision, claiming the new complex would damage the streetscene and dominate, to its detriment, a neighbouring grade II listed building, Elm Lawn House, which was built in the 1830s.

The council argued that the scheme would cause irreparable harm to Elm Lawn House, which would be surrounded on three sides.

But Graham Bell, design director for McCarthy and Stone, said the complex would enhance this part of Worthing.

When Elm Lawn House was listed in 1976 it was described as "very badly mutilated".

Mr Papworth agreed, stating: "The new building would complement the existing structure and the character and appearance of the area."

He added: "The fact that the building wraps around the listed building does not cause harm, in my opinion."

Mr Papworth said he attached only limited weight to the council's masterplan as the proposals were at a very early stage.

McCarthy and Stone appealed after the council failed to consider its application in the allotted time.

The council can appeal to the High Court, but this is thought unlikely due to the cost.

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