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The former Savoy cinema in Russell Street, Kettering, has been empty for 11 years and numerous applications to develop the site have been considered by Kettering Council.
The site now belongs to Presentation Social Investment Agency.
Kettering
Council rejected two similar applications by Presentation to create a three-storey building comprising of 23 new homes on the land.
The company appealed against the decision but, dismissing the appeals, Government inspector Julia Gregory said: "I consider the main issues to be the effect of the proposals on the character and appearance of the area, and the adequacy of amenity space for future occupiers.
"There is no in principle objection to the demolition of the cinema which currently occupies the site and is vacant and in a poor state of repair."
Russell Street resident Lloyd Creighton said: "I'm not very happy about the cinema still standing, looking like that. It should be knocked down as soon as possible.
"Even if the owners don't have planning permission to build on the site, the cinema should be knocked down."
Chief executive of Presentation Mohni Gujral said: "We are of course disappointed once again.
"However, we are, I believe, near the end of the process. We will continue to work with the planners to resolve the matter to everyone's satisfaction."
The full article contains 243 words and appears in Northants Evening Telegraph newspaper.