Oasis Developments Hastings Ltd wants to build 20 flats, six holiday lets and four commercial units on the site in George Street, Old Town.
Hastings Borough Council granted approval on October 22 stating that construction must start within two years.
Residents have described the site as an ‘eyesore’ and raised safety concerns about an unstable wall and hoardings that have blown down in high winds.
In March Hastings Borough Council said it would take enforcement action against Oasis Developments over the state of the site, issuing a Section 215 notice, which local authorities use to require landowners/occupiers to clean up land or buildings that adversely affect the area.
In December 2025, the council had urged the company to start tidying up the site at 39-41 George Street.
Oasis Developments Hastings Ltd said in March this year that a 'significant part of the delay' in redeveloping the site was due to the 'planning process' and the 'time taken for the council to determine the application'.
An application to demolish the amusement arcade building at 39 and 40 George Street was made in October 2022 and later withdrawn.
The application to redevelop the site was made in June 2023.
In July workmen were on site covering up and making safe the wall of an adjacent building. This followed assurances given by the owner to the council that improvement work to the wall and the front of the site would be carried out.
The blaze at the former amusement arcade and nightclub in George Street broke out on January 18, 2023.
Firefighters and 10 pumps spent all night tackling the blaze. Sussex Police said the fire was treated as a ‘deliberate ignition’.
Work to knock down the building started in April 2023 and demolition was completed in August that year.
The three-storey building was previously an amusement arcade and a nightclub.
The building was sold for redevelopment into 20 flats in November 2022.
A design and access statement, on behalf of the application, said: “The proposed development is a true mixed use development, which provides clearly defined functions, all of which will positively contribute to George Street as well as the wider Old Town area.”
It said the scheme will provide 'quality' commercial premises, holiday let accommodation that will attract 'high-spending' visitors to Hastings, and large flats for families.
A Hastings Borough Council spokesperson said: “The Section 106 legal agreement has now been completed and planning permission for the redevelopment has been granted. This is an important step forward, although the applicant must still submit further information and obtain approval for the conditions that need to be met before the main development can begin.
“The council has asked the applicant to progress these requirements urgently. The applicant has confirmed that work on the necessary submissions is beginning, but we do not yet have a confirmed date for construction to start.”

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The site of the former amusement arcade in George Street, Hastings. Picture taken on October 27, 2026 Photo: Staff

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The site of the former amusement arcade in George Street, Hastings. Picture taken on October 27, 2026 Photo: Staff

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The site of the former amusement arcade in George Street, Hastings. Picture taken on October 27, 2026 Photo: Staff

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The site of the former amusement arcade in George Street, Hastings. Picture taken on October 27, 2026 Photo: Staff