Health chiefs are appealing a decision stopping a disused walk-in centre from being turned into new homes.
Around 150 residents signed a petition against the redevelopment of the NHS walk-in centre near Barking Hospital in Upney Lane.
Its services were transferred to the community hospital in February but neighbours objected to plans to knock it down and build 26 houses and flats at the site.
Residents feared the development would lead to an increase in traffic and believed they were not consulted properly about the plans.
Barking, Havering and Redbridge University Hospitals NHS Trust, which ran the centre, has launched an appeal after councillors turned down its planning application in April.
Trust head of estates and facilities Peter Harris said: “The trust was disappointed that the council refused planning permission for the Upney Lane site, so has decided to appeal the decision.
“The land will be worth far more if we can sell it on with planning permission for development.
“We have a responsibility to achieve the best possible value as the money from the sale of the site will be reinvested into the trust and ploughed into improving patient care.”
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