Drive four miles past Burford on the A40 towards Cheltenham and you cannot miss the derelict unfinished hotel on the crest of the Windrush Valley – it has stood there crumbling and increasingly vandalised since 2001.

It’s an eyesore in the Cotswolds Area of Outstanding Natural Beauty and has been an object of much controversy over the years as planning applications for the site came and went.

The good news is that, finally, housebuilder Westfields Homes has secured planning permission to redevelop the site. Called Little Windrush, the first phase comprises eight houses, four apartments and a farm shop and café. The second phase will see the conversion and extension of the partially built hotel into 20 apartments, all with stunning views across the surrounding open countryside and river valley.

“We are delighted to finally be moving forward with this landmark development,” said Ivan Toscani, MD of Westfields Homes.

“It has been a long and difficult process, but we have at last been able to finalise plans and commence construction on site.”

The initial reaction to the development has been enthusiastic, with a number of off-plan sales.

Chris Priestley, of selling agents Knight Frank, said: “The site, which has had a controversial past, has always garnered interest but there is now a real feel of genuine excitement about this new hamlet which combines a balanced blend of housing complemented by a farm shop and bistro.

“The properties benefit from wonderful views of the Windrush Valley and will be finished to a high specification, so we expect the interest and reservations to continue.”

Before the M4 opened, a transport café stood on the Little Windrush site and was a landmark stop for truckers and travellers en route from London to Wales and back. Once closed, the café fell into disrepair, growing ever more decrepit throughout the 1990s. However, in 2001 building work began on Windrush Heights hotel and, despite an 18-month hiatus when worked ceased, it was nearly complete by 2005 – when work abruptly stopped again, and never restarted, leaving the building to crumble.

So the Little Windrush development brings a fresh look for this prime site, and the style and character is designed to complement the local Cotswold villages and add much needed housing stock, with the Help to Buy option available to first-time buyers. The new residents will also benefit from high-speed broadband provided by Gigaclear.

The farm shop and bistro, which will be called The Cotswolds Outpost and run by the owners of nearby Sherborne Tea Rooms, is sure to be popular with both residents, local folk and travellers, who will be able to stop off for refreshments at this scenic spot on the A40 once more.

For more information about Little Windrush call Knight Frank on 01789 269853, www.knightfrank.co.uk or www.little-windrush.co.uk