A former Brighton murder scene is set to be turned into five homes, to the horror of its neighbours.

Brighton-based AR Properties has applied to turn the four-storey terrace house in Russell Square, where father-of-three Craig Palmer was battered to death in 2011, into bedsits.

The grade II listed property was the long-term home of Regency Square Area Society member Ken Kennar until his death in 2010.

But squatters took over the property and in January 2011 Mr Palmer was killed there following a drink-fuelled row.

Now, councillors have been recommended to approve plans to bring the building back into use.

This is despite objections from the Regency Square Area Society and residents who believe the proposal would see “too many units crammed in too small a space and fragile, historic building”.

They also argue that the “calibre of future tenants will be detrimental to the prestige of Russell Square”.

Duncan Cameron, of the Regency Square Area Society, said: “This area has a higher transient population than the council considers and this will add to it.

“The local residents are against it, the conservation society is against it, the local councillor is against it and advice from the Georgian Society opposes it.

“We feel that if it was put on the open market as a three-storey family home, it would sell.”

Three homeless men, John Battams, Mike Zur and Ireneusz Malesza, were sentenced to a minimum of 15 years in October 2011 for Mr Palmer’s murder.

In June last year, a council planning enforcement officer told the owners of the property to stop all works being carried out without listed building consent.

A planning application for the latest proposal was submitted in January. The renovations are expected to cost about £85,000.

The council report, which will be discussed by the council’s cross-party planning committee in Hove Town Hall today from 2pm, said: “The proposed conversion is considered acceptable in principle and no significant adverse impact on neighbour amenity or transport is forecast.

“The external alterations which have been carried out are considered appropriate to the character and appearance of the building.”