Plans for an 11-bed home of multiple occupancy branded a ‘hovel’ by East Northamptonshire councillors will go ahead after the council lost an appeal.
The former factory in Victoria Road had been refused by the planning committee earlier this year because councillors were unhappy with the size of the proposed flats.
But applicant Andrew Watts decided to appeal against the decision and this month he won his case.
The application had been refused three times in three years.
The loss will have a financial impact on the council, which will have to pick up the costs.
A council spokesman said: “East Northamptonshire Council can confirm that a planning application for 42 Victoria Road, Rushden, has been refused and the subsequent appeal by the developer was lost on July 3.
“Following this decision, the appellant will now submit their claim of costs to ENC.
“Due to this being an ongoing case, ENC is unable to comment further.”
At the planning meeting in January Cllr Dudley Hughes had said the accommodation was worse than that experienced by prisoners.
He said: “Once again we have an application that is not wanted by the place it is proposed for and it is an insult to the people who are going to live in it.
“It just not on. How can we in the 21st century approve places that are worse than a prison cell?”
Sarah Ward, Local Democracy Reporting Service