Plans to convert a Watford restaurant into flats and a shop have been shot down as the government criticised the "poor standard" of housing.

The owner of 36 Market Street, which houses the Spice Lounge Indian restaurant, had submitted an application in August last year to change the eatery into a retail unit, which was first refused by Watford Borough Council in September.

Its storage area behind the restaurant would have become one flat with stairs leading to a floor containing a three-bedroom HMO on the first and second floors, with a third HMO on the top floor.

But the planning inspectorate ruled the new flats would provide a “poor standard” of living in its decision published last month.

It judged that the kitchen of the three-bed flat would be “cramped” and that tenants would be confined to their bedrooms as no other communal living space would be provided.

Although the inspectorate recognised it would contribute to local housing supply, they judged that issues with the plans “significantly and demonstrably outweigh” their benefits. 

The Spice Lounge would have to close to implement the conversion plans, but it is not currently clear what the refusal means for the restaurant.

When the first application was being considered last year, the landlord said that the work may not start for some time if approved, as the restaurant still had more than two years on its lease.

The Spice Lounge has been contacted for comment.