170-year-old stables in Knightsbridge to become mews house

One of Britain's oldest working mews stables is to be converted into a multi-million-pound house.

Horses have been stabled at Elvaston Mews in Knightsbridge for more than 170 years but a combination of spiralling insurance costs and the effects of the credit crunch have forced the owners out of business, and the property is to be converted into a home complete with basement extension and "Juliet" balconies.

It is understood the new owner is a Swiss banker who intends to live there with his family. Houses in the area sell for about £2million.

The demise of the Knightsbridge Riding Club means there are now only two working mews stables in the whole of London.

Hyde Park Stables in Bathhurst Mews is one of the two. Manager Catherine Brown said: "Until 1939 there were 200 working mews in central London. Now there are two. I think that is a tragedy."

The Elvaston Mews stables were built in the 1830s as a home for carriage horses owned by the wealthy residents of houses fringing Hyde Park, with room for nine horses. For the last 15 years it has also been used a riding school and offered excursions in Hyde Park.

Permission to convert the property was granted by Kensington and Chelsea council this month after planners decided it was "open to interpretation" as to whether it had merit as a recreational facility.

Michael Bach of the Kensington Society said: "I am appalled. The officers did not take the fact it was a riding stables into account. I don't think they were aware of what they were doing. The stables were a significant recreational use."

The news comes at a critical time for Britain's horse riders.

The British Horse Society says some schools have seen insurance costs increase fivefold, and up to 100 stables a year are closing. The new owner of the site was not available for comment.