Church leaders' plans to build a community post office at the back of their church have been dealt a final blow.
The long-term future of a post office in Kemp Town now hangs in the balance as residents wait to see whether the one remaining will close.
It had been hoped an alternative post office could be built at St George's Church, in St George's Road, Kemp Town.
But planning inspectors upheld Brighton and Hove City Council's decision to refuse planning permission.
The Reverend Andrew Manson-Brailsford, of St George's Church, said the decision may mean some people move house in order to be closer to a post office.
He said: "How sorry I am that people who need this facility may lose out and, indeed, may have to move home.
"It is a great loss to Kemp Town."
One of the two post offices in Kemp Town closed four years ago and the remaining one has been under threat since the postmaster retired.
The space at The Crypt Community Centre, part of St George's Church, had been identified in a survey by Post Office Limited as the only viable site.
The latest application was the church's second attempt to keep a post office in the area.
Plans were redesigned in January to take into account comments from the council's conservation team. The height of the extension was lowered and a new flat glass roof was added.
But inspectors dismissed the appeal, saying the work would have a harmful impact on the church and the conservation area.
The Kingscliffe Society, The Kemp Town Society and The Georgian Group opposed the application, fearing the post office would spoil the church's character.
Church warden Sue Clough said: "The church has been putting this project together for several months because people are worried about the imminent closure of the remaining post office and this would have provided for the gap in services.
"A lot of people from the congregation had written in support of the project so they will all be very disappointed to hear of the refusal.
"It would have been very useful for elderly people or people with walking difficulties who would find it difficult to get into the centre of town."
Ward councillor Gill Mitchell said: "I would have welcomed a new post office being opened within the church buildings. It would have been very accessible and I am disappointed to hear of the decision."
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