The pub closed last summer after its owners claimed it was unviable, though they have continued to run their holiday accommodation business from the Grade II-listed 18th-century property, which was formerly the village’s courthouse. There has been a coaching inn on the site since the 14th century.

ACV status give pubs protection from inappropriate development by giving community groups the chance to bid for the building if it goes up for sale.

The listings are often granted if it can be demonstrated that a village is losing a vital social amenity, such as when there are no other pubs nearby. However, applications can be refused if council planners believe there is no realistic prospect of a community group making an offer for the business and running it themselves.

North Yorkshire Council rejected the application from the 30-strong Gilling West Community Group, stating that there was not strong evidence The White Swan being open furthered the social wellbeing of Gilling West.

Owner Dean Hodgson has submitted planning proposals to the same council to alter the internal layout of The White Swan, including changes to the traditional arched entrance designed for horses and carriages to provide access to letting rooms and the conversion of the staff toilets to a spa, plunge pool and sauna area.

The community group said they had concerns that the plans resembled a residential dwelling, with reduced bar, restaurant and kitchen space, and wanted assurances it would remain as licensed premises.

Mr Hodgson has said that it is intended that the inn re-opens following modernisation work, and has not submitted a change of use application, which would be required to convert the site into housing. The seven existing letting bedrooms and a gym are currently on the upper floors and in the old stable block at the rear.

The pub is also for sale for £550,000 with Love Property of Catterick Garrison.

The White Swan, Gilling West: Council decline to make Grade II-listed Yorkshire village pub an Asset of Community Value despite fears it could become housing