A RUNDOWN building used by artists in the city will be replaced by new homes after the council agreed to sell the site to a developer.

The decision comes despite an attempt by councillors to give preference to a lower financial offer from one of the tenants for the Belmont Street Annexe.

Brighton and Hove City Council had been asked by a committee to take into account the “social value” of the rival bids for the building.

But even when the social value was assessed, the artists were trumped by the developer, Westfield Investments, which owns the site next door in Cheapside, Brighton.

Members of the council’s policy, resources and growth committee were told that Westfield, run by Brighton businessman Colin Brace, wants to build 31 homes on the site.

In the meantime he had offered financial help and a degree of security to the artists based in the Annexe as well as a new home for the Brighton Fringe.

The council has also set aside studio space for them about 400 yards away in New England House.

Among those currently based in the Belmont Street building are Same Sky which organises the annual Children’s Parade and Burning the Clocks.

Green councillor Phélim Mac Cafferty said that artists were struggling to find affordable studio space across Brighton and Hove.

He said: “The creative industries are worth ten per cent of jobs in the city.”

Citing the breadth of Same Sky’s work in local communities, Councillor Mac Cafferty said: “I cannot imagine there’s a single person in this room who has not been touched in one way or another by these businesses.”

But Labour councillor Les Hamilton said that the three-year lease offered to tenants persuaded him to vote in favour of selling to Westfield.

He said: “I don’t think if I thought this was going to be the end of Same Sky I would take this view.

“I don’t think there’s anyone in this room who would like to see these organisations go to the wall.”

One of the current tenants, designer David O’Connor, tried to buy the building himself.

He submitted a bid and a business plan to the council which he believed showed that it was possible to fund essential repairs without putting up rents.

He said: “Something soulless is going to replace the Annexe now.

“It’s all contributing to the East Croydonisation of Brighton and Hove.”

He said that in the 35 years that he had been based in the building any repairs were carried out by the tenants.

Mr O’Connor said: ” We do feel very knocked back. We have always had a sense of ownership.”