Councillors have turned down a scheme that would have replaced a run-down Kenilworth bungalow with a new five-bedroom house because of its impact on a nearby listed building.

A number of neighbours wrote in favour of the plans to develop the site in Fieldgate Lane and planning agent Liz Nicholson urged members of Warwick District Council's planning committee to approve the scheme when they met this week.

She said: "It is not surprising that there are five letters of support from local residents. Mr Davis [the applicant] wishes to build back better as promoted by central government. He is proposing a high quality design that we believe would sit well between the modern design of the house immediately to the south and the listed building to the north.

"The existing bungalow is not a modest single-story building, it is a large dormer bungalow with accommodation in the roof. The proposed house is only 50cm taller than the bungalow."

Councillors were told that the site had been part of the garden of the 18th Century Fieldgate House, a listed building in Fieldgate Lane. It was also in the Kenilworth conservation area.

Planning officer Sandip Sahota said: "The officers' view is that because of the scale, bulk and mass of the proposed dwelling, and given that the site is within the historic garden and cutiliege of the listed building, it would result in substantial harm in the direct setting.

"We would be willing to accept a replacement building but one much closer to the scale of the dwelling that is already there."

He explained that while the current bungalow covered an area of 144 sqm with a 16sqm garage, the proposed house covered 348 sqm with a 42 sqm garage. He also disputed the similarity in height, adding that he estimated that the proposed two-story home would be 1.75m taller.

Cllr James Kennedy (Green, Kenilworth Park Hill) proposed that the plans be approved. He said: "I agree that harm is less than substantial and the more we look at it the more it seems to be covered by trees. Bearing in mind the developments that have already taken place within the curtilage of the listed building I would like to suggest that the public benefits include the creation of a well-designed, attractive new dwelling where the existing building is falling down."

But others disagreed with Cllr Terry Morris (Con, Warwick Saltisford) warning: "I would very strongly advise colleagues to proceed with caution with this one.

"The reason why this is before us is that five members of the public have put in their support and most of those are along the lines that the current dilapidated bungalow is pretty ugly. I think the prudent thing is to go with the officers' recommendation for refusal and I'm sure the applicant and officers would work together for a potential different design that would meet their approval."

Planning permission was refused by a majority vote.