A garage will be demolished to pave the way for 14 homes in Newhaven.
Frosts Garage in Denton Corner will be demolished after Lewes District Council approved its planning application.
The company carried out a comprehensive marketing exercise in 2012 and 2013 to see if a buyer could be found for the used car site, either as a commercial premises or with the benefit of planning consent for homes.
After a sustained marketing campaign of nine months it was unable to sell the site.
The Vauxhall car dealership is too large for Frosts so the company is looking to divide the site into two roughly equally sized areas.
In the short to medium term it will retain the car showroom building on the east side of the site, while the west side will comprise phase one of the development and accommodate eight houses.
A further six houses would be part of a later phase of development.
As Frosts retain a requirement for representation in Newhaven the phase two site will be effectively land banked subject to the trading fortunes of the car industry going forward, a report by Oakley Commercial for the company said.
Lewes district council lor Steve Saunders, who represents Newhaven, said: With regards to the Frosts site, I was a little disappointed, but the business has suffered from being just a little off the beaten track so-to-speak.
“It is set back from the main road and there is little passing trade outside the business forecourt itself, other than local traffic.
“Although I sympathised with local residents regarding the development, it is sited adjacent to an existing residential area and the developers had taken on board our concerns at Town Council.”
Lewes district councillor Rod Main, who represents Newhaven, said: “The Frosts application seems to be a shame on one hand as its losing a retail/business area and turning into residential.
“However, other than a garage, its difficult to see what else could go on the site.
“Local residents’ concerns were that the roof lines may be a bit high and that they would prefer a low hedge/shrubbery to any more trees or close boarded fence between them and the new development.
“The applicant acknowledged the last of these at the meeting.
“Other than that, the proposed buildings are fairly unremarkable and, although garden areas are not spacious, there still seems to be an open feel to the development.”