A long-running planning dispute involving a multinational company, a determined neighbour and a 500-year-old barn took another turn this week.

The Grade II listed barn, adjacent to the historic Oxhey Hall, in Hampermill Lane, has been the subject of a four-year battle between owners Veolia Water, which plans to build houses on the site, and neighbouring residents.

So determined was neighbour Christine McNulty to “protect” the site that she lodged a rival planning application with Three Rivers District Council to turn it into a film studio – plans the council rejected.

Yesterday a planning inspector upheld that decision, rebuffing a legal appeal brought by the residents in protest.

They claim the plans – lodged despite the fact they don’t own the site – are the best way of preserving the building.

In July, an application from site owners Veolia to convert the building into two luxury homes was also rejected by the council.

Mrs McNulty called the latest decision “erroneous” and promised to continue fighting for the building’s future.