A plan to create four flats in an industrial unit overlooking a historic Truro streets would create a “baked-in dispute with neighbours”, a Cornwall Council planning meeting has heard.

Residents and councillors opposed the proposal next to The Parade, a listed 200-year-old Georgian-style residential terrace, which was ultimately refused.

Applicant Dan Anson-Hart applied to convert the Cooper Signs industrial building into apartments. Previously used by Carley’s of Cornwall organic food manufacturer, the vacant building is located in the Truro Conservation Area but falling into disrepair.

Cornwall Council’s planning department recommended approval as “the development would assist the council in meeting its now increased housing targets set by government in the new National Planning Policy Framework ... without building on greenfield land”.

But Truro City Council previously recommend refusal on the grounds of overdevelopment, leading to overlooking and substandard accommodation; and Cllr Loic Rich brought the matter before today’s central area planning meeting, expressing concerns over residential amenities and parking.

“I think this is being done on the cheap,” he said. “I’m quite happy to see some accommodation put in that building or in that area, but four is too much. Some windows are looking directly at a quarry wall.

“There is a housing crisis all over Cornwall – people are desperate for somewhere to live, so I’ve no doubt that if you put four flats there, people will live in them. But as a planning authority, are we encouraging this type of backyard development?”

Several Parade residents objected to the proposals. Internationally renowned artist Denzil Forrester questioned “how the inclusion of windows to supply four flats with enough light and ventilation would be possible, without them overlooking and creating light disturbance to the surrounding abodes and gardens”.

Speaking at the meeting on behalf of neighbours - many of whom were in the public gallery - Oliver Pool invited the committee to have a site meeting in a Parade garden to see for themselves how intrusive the new flats would be.

“If you approve this, it creates a baked-in dispute with the neighbours,” he said. “Anyone who has had their privacy removed in that way is going to put up a fence, Leylandii, whatever it is to try and get it back.”

He added: “If the Truro Conservation Area means anything, surely it means not cramming four flats into a concrete block shell underneath an old industrial grey corrugated roof up a narrow and already over-used private lane.”

Creating four flats with two parking spaces was “just inviting trouble”, according to former Parade resident Cllr Rob Nolan. “Parking is an issue - numbers 1 and 2 ended up in court arguing over spaces,” he said. “The roads off Trafalgar roundabout are residents’ parking, Malpas Road is double yellow lines all the way down.”

Cllr John Fitter agreed with the planning officer that four flats were suitable under planning law, but the vote in favour was lost by four votes for, five against and no abstentions. A counter-proposal to refuse due to over-development and overlooking was won by five in favour, four against and no abstentions.