A CHRISTCHURCH pub partly demolished and left as a pile of rubble will be turned into a block of flats after developers feared investing in a type of business hit hard by the recession.

The previous develop-ment scheme for The New Inn in Fairmile Road included plans to alter the original building to accommodate six flats and a refurbished bar as well as an extra six flats at the back of the building.

But due to the rapidly deteriorating economic climate, the work ground to a halt in March 2008.

And now, in light of the entire pub trade struggling against challenges includ-ing shrinking footfall and cheap supermarket prices, developer Primetower Properties Ltd has decided it is not viable for a new purpose-built tavern on the site.

The new scheme, which was approved by Christchurch Borough Council, features four three-bedroom flats, three two-bedroom flats and one one-bedroom flat.

The run-down site, now almost entirely surrounded by hoarding, lies in close proximity to around 12 other pubs in the town.

In a financial viability report included in the planning application, Primetower Properties said forecasts show the pub would bring in losses of nearly £165,000 a year should it be rebuilt.

The statement added: “The combination of 12 other pubs within 1,200m, cheap beer being sold by supermarkets as a loss leader and a major recession means that the opening of a new public house will spread a reducing amount of income across more businesses, making the public house trade in Christchurch even less profitable.”

Over the years, the site has been the subject of many planning applications since previous owner Eldridge Pope said the pub was no longer profitable.