An 1800s Cotswold pub that closed nearly two years ago cannot be converted into a private residence after planners threw out the bid.

The latest twist in the fortunes of the Old Neighbourhood Inn on Midway, Chalford Hill, which sits in the heartland of Stroud's Five Valleys, is being celebrated as a triumph by the community after the venue was recently made an Asset of Community Value and hundreds came forward with a plan to club together and buy the venue.

Renamed in 1992 as a reference to a nearby road, the Old Neighbourhood has trading records as the Mechanic's Arms that date back to 1856.

The pub played a pivotal role in community support during the Pandemic's lockdown when regulars subscribed to a take-away service and with regular markets held in the pub's car park, a local campaign to resist its loss enlisted the support of the town's MP, Siobhan Baillie.

A change of use bid went before Stroud District Council earlier this year and in a planning statement the applicant said that the current owners had bought the closed pub in February 2023 to add to their free-of-tie pubs portfolio.

Having been marketed by Savills, the pub and beer garden site amounted to 880 sq m plus a 934 sq m site opposite that was used as a car park.

Savills said the property offered: "a restaurant area, adjoining bar lounge, games room, further bar room and store rooms, wc's etc, together with a large beer garden."

The new owners continued to seek tenants via one of the largest national pub agencies and also put the pub up for sale, planners were told. They added: "Unfortunately, despite a year-long marketing campaign they have been unable to attract tenants." The empty pub was consequently now deteriorating.

In supporting evidence for planners, agents Bruton Knowles suggested the pub was no longer viable commercially: "From the length of time the Old Neighbourhood Inn has been closed it is likely that previous customers have now established themselves in the alternative local pubs," the valuation experts said.

They added: "Should it reopen it would have a detrimental impact on the trade of those pubs leading to all of them struggling to make a living."

In the meanwhile, local residents banded together, with Timothy Woodfine, chair of the Chalford Hill Community Benefit Society saying that there was an "exceptionally strong community support for acquiring and re-opening the pub". He added that a "robust" business case had been developed.

Residents and neighbours flocked onto social media to celebrate the news, while 241 Co-Operators, a consortium co-operative society of community business investors welcomed the rejection.

In its final ruling, SDC said: "The proposed change of use to a C3 dwelling will represent the wholescale loss of a designated Asset of Community Value and Public House with its associated amenity land.

"The application is supported by a significant lack of financial and supporting information and therefore fails to demonstrably justify that there is not the prospect of a continued community use or that the site as a public house is not viable."

In addition, the council said: "The marketing exercise does not demonstrate a realistic or fair market value that reflects market conditions or that part of the site has been sold and moreover introduces barriers to a sale to the community or a private interested party. The application fails to demonstrate that there are sufficient similar uses that are accessible for the community."