A "LANDMARK" building in Stourport basin that has been lying empty for a year will be the catalyst to regenerate the area, according to owners British Waterways.

The former Tontine pub and hotel, a Grade II listed building dating from the late 18th century, has been boarded up since it closed its doors as a pub last May after years of gradual decline.

British Waterways said the building is unlikely to be revived purely as a hotel, but may be turned into a mixed development of flats and shops.

"There has been some interest but it's historically important and we don't necessarily want to sell to the highest bidder," said waterway manager Tony Harvey.

"We want to make sure redevelopment of the site fits in with the overall scheme. I think we can create a great atmosphere there."

It follows claims from an unnamed businessman and resident that the "prominent and beautiful" building is being left to go to "rack and ruin" because it is not available to buy.

The 54-year-old, who claimed he obtained his information from documents British Waterways had sent to a prospective client, said the company is not willing to sell it and is asking for £95,000 a year in rent - despite the costs of refurbishment.

The businessman said: "I wouldn't want to invest £95,000 a year in rent for a property I didn't own.

"And if a developer is going to invest £1 million refurbishing it, they want at least to be the owner."

He added that regeneration of the whole area, which includes the former Larch Lap timber factory, was being stalled by the building's "dereliction".

"We've got to encourage new money. Stourport has not caught the regeneration bandwagon."

British Waterways denied the building was not being offered for sale. It said its condition had "stabilised" and declined to comment on the annual rental figure, but conceded the property "needed a lot of work".