Homes could be built on pub site at The Brant Inn, in Groby
The owners of a failing pub are hoping to win planning permission to build houses on the site.
Everards is shutting The Brant Inn, in Groby, because it is "no longer economically viable".
The brewery is seeking permission for 31 homes on the site.
Residents living near the Overdale Avenue pub said it was a shame, but their local had gone downhill.
Business Cards From Only £10.95 Delivered www.myprint-247.co.ukView details
Contact: 01858 468192
Valid until: Sunday, June 30 2013
Chris Ingham, 57, said: "People might be worried about the new houses and extra traffic because it's already difficult to get out on to the main road, but the pub has really gone downhill.
"It used to be very popular and some nights it was heaving in there. It's a great shame because it's a nice site for a pub."
Joyce Chawner, 85, said: "It hasn't done well for a long time – it's a shadow of its former self.
"We're concerned the trees might go if they develop it. We love the trees and they also stop some of the noise from the A46."
One man living near the pub, who did not want to be named, said: "At night, kids in their cars use the car park to drive around in and there are a lot of complaints to police."
Borough councillor Peter Batty, who lives in the village, said developing The Brant Inn site would help the village meet its target for housebuilding.
Under the local development plan, 110 homes are to be built in Groby parish by 2026.
An application for 91 houses by JS Bloor was rejected last year after residents objected.
Mr Batty said: "When we won the appeal, the planning inspector made it clear we had to find places for the 110 homes so it will be good for the village if we can build 31 of them here."
A spokesman for Everards said: "The economic climate, changing social habits and high running costs have all brought challenges for some pubs.
"Rather than allow such sites to deteriorate, we seek suitable alternative uses. The licensee will continue to operate the pub for the immediate future."
The application will be decided by Hinckley and Bosworth Borough Council.