Ormonde Nursing Home in Poole will not reopen, and will instead be converted into five residential flats and one house.
The South coast home was closed in March 2015 by its owner Abdul Jaffer. A second home owned by the local entrepreneur was also closed after being rated inadequate by the CQC.
Ormonde House was rated as meeting required standards in its last report by CQC in 2013.
Local residents groups in Poole, including the Branksome Park, Canford Cliffs & District Residents Association, opposed the planning application to convert Ormonde House to flats, but the Borough of Poole planning committee said that it was not viable to reopen it as a care home.
Planning committee chairman Cllr Peter Pawlowski explained: “The committee accepted on balance that a care home on the site was no longer viable and that conversion of the building to new homes was an appropriate use for it. The application has nonetheless highlighted concerns about the viability of smaller care homes in Poole.”
The councillor did admit that care home places were needed in the town and that the planning committee should consider the problem. “This issue requires closer scrutiny if Poole is to be capable of meeting the needs for future care home places,” he said.