Camden Council gave finance company Amity Investments the green light last week to demolish a dilapidated four-bedroom cottage in a heritage conservation area in John Street.

Two commercial units which exceed the council's maximum height limit will be built on the site.

The finance company had objected to the standard, saying it was ``unreasonable in this case''.

A dilapidation report said the cottage had suffered damp erosion and was at risk of collapsing.

Mayor Chris Patterson told last Tuesday's council meeting that Camden would lose what could have been a ``tremendous asset''.

He said it was a shame the previous owner had not invested money to repair the house.

Camden Historical Society member Ian Willis said the cottage's condition was ``vandalism by neglect''.

Last year Mr Willis joined Camden Residents' Action Group president Robert Wheeler to call for the cottage to be saved.

``It was worth saving because once it's lost, it's lost and Camden is losing its heritage bit by bit,'' Mr Wheeler said.

Camden Historical Society vice president John Wrigley said: ``We regret the loss of the old cottage. We're keen to see it replaced with a building that is sympathetic to the area's heritage''.

The council refused the application earlier this year because of inadequate information but amended plans were submitted that showed a ``more appropriate building design reflective of the heritage streetscape'', the council report said.