Developers have won the right to restore a vandal-hit Georgian mansion.

Secretary of State for Communities John Denham has overruled his advisers at English Heritage, who had opposed plans to renovate Scraptoft Hall.

He upheld the view of a planning inspector, who conducted an inquiry in October.

Work can now start on converting the hall and its grounds, on the outskirts of Leicester, into a retirement village of 103 apartments.

A key part of the scheme will see accommodation blocks built in the grounds of the grade II* listed building.

The decision delighted neighbours, who feared the hall would be allowed to collapse if the scheme was rejected.

English Heritage argued the project would damage the setting of the building, parts of which date from the late 1500s.

Adrian Kerrison, a director of Scraptoft Hall Retirement Village, said he was delighted with the decision and thanked constituency MP Alan Duncan for his help.

Mr Kerrison said: "The attitude of English Heritage has been extremely disappointing. The scheme had the full support of the local authority and local people.

"We look forward to creating a high-quality retirement development that will ensure the future of this historic site."

Mr Duncan said: "I am very pleased I was able to assist in making sure the right decision was reached."

Scraptoft parish councillor Rose Renner said: "This is great news for the village.

"The hall is so badly run-down we feared there would be nothing left to restore if this scheme was turned down."

Harborough district councillor Simon Galton said the plans were the "only realistic option" to save the hall.

He said: "It has been badly damaged by vandals and thieves in recent years.

"I am pleased the Secretary of State has approved the scheme."

Government inspector Roger Brown said the retirement complex was a viable project to secure the building, and provide care for elderly and vulnerable residents.

The company bought the site, in 2008, for £2.8m.

Architect Mark Stewart told the October inquiry that sections of the buildings had become "very derelict and fire damaged".

English Heritage believed less intrusive schemes could be used to save the building.

Dr Anthony Streeten, regional director of English Heritage in the East Midlands, said: "It is our belief that a scheme of this scale is fundamentally out of context for this grade II* listed baroque country house and its gardens.

"It will now be up to the developers to get on with the job quickly.

"They need to secure and repair the listed buildings immediately and ensure the people of Scraptoft reap all the benefits that have been promised."

English Heritage will have to pay some of the developers' costs for the inquiry.