A former sheltered housing block in Oxford is set to be redeveloped after being boarded up for four years.

Developers said Grantham House, in Jericho, will be refurbished to provide homes to rent.

The scheme is being under-taken by UK property entrepreneur Johnny Sandelson and his Asian-based partner Shuif Hussain.

Architects are drafting plans for 29 new homes that will soon be submitted for planning permission.

Oxford City Council rehoused 20 elderly residents in 2007 and marketed the property for £2.75m.

It has not confirmed how much the building sold for.

The new scheme will include a ‘green’ roof to modernise the building and new skylights to allow in more natural light.

Architect Douglas Riach said: “Sustainable aims were key to the design proposals.

“It is intended that we reuse the existing building, saving the material which would otherwise be wasted in its demolition.”

He added that the team plans to clad the existing brickwork in colourful insulating panels.

The news was welcomed by Tony Joyce, chairman of the Jericho Living Heritage Trust, who said: “I think everyone will be pleased to see that block in use again to provide further housing for that part of the city.”

But Jericho councillor Susanna Pressel said she was disappointed that sheltered housing has now been lost from Jericho.

She added: “What we wanted to happen was that Grantham House would be knocked down and we would get a wonderful new development in its place with 50 per cent of the units for social housing.”

And Jenny Mann, secretary of the Jericho Community Association, said she was worried that more rental accommodation in Jericho could destroy the area’s strong community identity.

She added: “Expensive flats for renters is not what Jericho residents would ideally want.

“We would want family homes, but I do understand that is probably not a goer where this building is concerned.”

Mr Sandelson said: “We are delighted to have made this acquisition. We will shortly be submitting plans to the planning department and, with their support, we believe we will reap significant long-term rental returns.”

He added: “There is currently a shortage of high-quality letting units available, so this scheme will add to the rental pool in the area.

“It is our intention to progress the work quickly, yet sensitively, to create a modern feature building. I believe this will provide vibrancy and vitality to the local area. We will work closely with Oxford City Council throughout the redevelopment.”