Narberth’s old junior school will be demolished by the end of this March, Pembrokeshire County Council’s cabinet decided on Monday.

Cabinet heard that the selected developer had now withdrawn from the project by mutual agreement as the scheme had not started by a December 31 deadline.

Council leader, Jamie Adams, said that economic conditions had “changed considerably” since sale of the site was first considered.

“We need to re-evaluate this site and what it can deliver,” he said. “With the loss of this development comes the loss of a significant number of affordable homes, something that Narberth desperately needs.

“Moving forward we have a conundrum to solve. We have a site of some value which is significant in terms of its location. How it fits with the current offer that’s in Narberth. This is not simply about the highest bidder getting this site.”

He asked cabinet to action a previous recommendation, that the old school be demolished and the site used for car parking, until the site and its potential was re-evaluated by council officers.

Councillor Elwyn Morse, cabinet member for culture, sport and leisure and member for Narberth Rural, asked if there might be who would want to take the site on with the building intact but the leader replied a “clean site was advisable” and that the current building did not add anything.

Director of development, Dr Stephen Jones, said, that while he appreciated the leader’s comments about a clean site, demolishing the school would be met with opposition from locals.

“It is fair to recognise that it has some sensitivity within the local community,” he said. “There is a group of people who went to the school who are passionate about retaining the façade. I think it is fair to recognise there will be some opposition to the demolition when that happens.”

Cabinet voted to note the withdrawal of the developer, delegate officers to review the development brief and options for re-development and that the building should be demolished by the end of March.