Plans for a three-storey development of 23 homes on the site of the disused Savoy cinema in Russell Street, Kettering, were refused on the grounds the plan would be an overdevelopment of the site and that the homes would be out of character with other buildings on the street.

At least eight applications have been made by various companies over the past nine years to build between 20 and 25 homes on the site.

Presentation Social Investment Agency, which owns the site, made the most recent application, which included plans for parking for residents of the proposed homes.

Rejecting the application under delegated powers given to council officers, the authority's development control manager Tom Shields said the proposal would result in an "unsatisfactory living environment for future occupiers in a development which was out of character with the surrounding area" and which contravened several local plans.

Presentation Social Investment Agency has until June 12 to appeal against the decision.

The company has already appealed against the council's decision to refuse permission for a similar plan submitted in January for 23 homes with roof terraces and basement car park.

Mohni Gujral, chief executive of Presentation, said: "We are extremely disappointed not to receive planning permission. We have been in liaison with the local planning department and from the outset were given to understand that our proposals would be looked on favourably.

"This is a site that has lain empty for 11 years. We have put forward a proposal to renew the area and provide much- needed affordable housing.

"This decision flies in the face of Government strategy to build more homes in the area."

Lloyd Creighton, 18, of Russell Street, said: "The old cinema is an eyesore. It must be more than three storeys high so I don't see the problem with a three-storey building for housing."