A LONG -running battle has come to an end over a controversial bid to build sheltered flats for the elderly on the site of the former Royal Hotel in Gillingham.

North Dorset planners have now given their thumbs-up to the plans by Churchill Retirement Living after hearing that the development will be "a good deal" for the town.

Permission has now been granted for Churchill to build 33 flats and two shops, with 13 parking spaces, as well as the company making a £560,000 contribution towards affordable housing in the town.

Plans for 21 flats and two shops on the Newbury site, at the corner of Hardings Lane, had already been approved but this did not include an affordable housing contribution.

Equally, a proposal for 35 flats had been turned down on appeal in April because again it did not make an adequate contribution towards affordable housing.

District planners were told that if they refused the latest application, Churchill could steam ahead with the 21 flats and two shops design and not be under any obligation to make an affordable housing contribution.

Churchill says that the £560,000 now agreed will be match-funded by the Housing Corporation and could provide 18 new houses and flats on land owned by Signpost Housing Association.

Daniel Wilden, Churchill's agent, says the development will also fill a desperate shortfall of retired housing locally.

"The population generally is ageing and sheltered housing like this, with communal facilities and a warden-manager, provide companionship and support," he said. "The average age of residents of such schemes is 78, with many in their 80s."

But many townspeople still regret that Gillingham has lost its hotel, "which could have been a much-needed piece of infrastructure in our town", said district councillor David Milsted.

"They regret that it wasn't developed into a thriving business. But it's gone."