RESIDENTS are preparing to regroup after a developer announced it would continue its plan to transform a historic house into flats.

SMC Developments last night revealed it was planning to appeal against Middlesbrough Council's refusal to grant permission for the plans at Red House Cottage, in Nunthorpe.

Campaigners, who successfully fought the proposals earlier this year, said they would take their arguments to the planning inspector.

However, they said they were relieved that SMC Developments were not going to just demolish the building, as at first intended.

Earlier this month, campaigners were left stunned over plans to demolish the Edwardian property, which is the former home of Lady Harrison.

Middlesbrough Council's planning committee threw out the application to replace the distinctive building with 33 flats at its meeting in July.

It was rejected on the grounds that it was out of character with the area.

Despite this, the developers expressed intentions to demolish the building.

But Sandra Thompson, of Signet Planning, consultants for the applicants SMC Developments, last night said: "Signet Planning can confirm that SMC Developments, who have the development interest in the Guisborough Road site, made an application to Middlesbrough Council to demolish the building.

"The local authority has confirmed that such an application is not required as the building is not listed or in a conservation area.

"The council has advised of the 28-day notification procedure, however, this has not been progressed.

"Signet Planning, on behalf of the clients, have submitted an appeal to the planning inspector requesting determination by a public inquiry in due course."

Campaigner Mike Smith last night welcomed the news. He said: "I am absolutely delighted with that response. We had no recourse and no way of doing anything that would prevent the demolition.

"I am really doing cartwheels that they have gone back to a planning process where we can stand side by side and arguments can be matched. I still think we have a strong case."

Campaigner Jo Turner said: "It is great news. We need to send a strong message to these developers that Nunthorpe is not theirs for the taking."

For information on the campaign visit http://www.greaternunthorpe.or