Kington residents were relieved to hear the future of the town’s youth hostel is looking more secure.

The mayor, Councillor Bob Widdowson, told a town council meeting on Monday that negotiations between the Youth Hostel Association and present owner, regional development agency Advantage West Midlands (AWM), were “well advanced”.

Locals feared for the former cottage hospital after AWM proposed to put it on the open market as the coalition Government prepares to replace regional development agencies nationwide with community-focused Local Enterprise Partnerships.

But Coun Widdowson said: “The town was concerned about the possible sale and is very relieved, and very satisfied, that it looks like being resolved, and that we will still have a youth hostel.”

AWM turned the derelict building into a 30-bed hostel in 2004 and subsequently agreed a 25-year lease with the YHA to boost tourism locally.

Now more than 4,000 visitors a year use the 0.16 hectare site, as well as nearby businesses, and YHA looks set to take full ownership.

“Now there is a commitment to it, and that’s good news,”

Coun Widdowson added.

Those present at the meeting also discussed changes to the health service in Kington and a proposal from the Marches Housing Association to allocate housing on a more local basis.