YORK'S voracious property market shows no sign of losing its appetite. Housing development is devouring open spaces, large and small, and swallowing up businesses whole.

The latest to be consumed is the Ambassador Hotel on The Mount. This impressive building has been a prominent landmark since it was built as a sumptuous merchant's house in the 19th century. When it was converted for use as a hotel, the aim was to retain "the feeling of a much-loved home".

Now it is to return to its former residential use, making ten homes rather than one. It is a sad moment for the staff, and for regular guests to whom the hotel was a home from home.

But the change of use has wider implications. Tourism bosses are dismayed that it is closing.

Any loss of hotel bedrooms is unfortunate: at peak times the city struggles to cope with demand as it is.

And the style and character of the Ambassador sets it apart from the modern budget hotels which have sprung up in York. In order to appeal to all-comers, the city needs a variety of accommodation, from bargain B&Bs to the still-awaited five-star luxury hotel. The Ambassador will be hard to replace.

We would not dream of criticising its owners for selling up: that is entirely their business. However, its sale is part of a worrying wider trend.

York is losing so many businesses to the seemingly ceaseless demand for "executive" homes, it is changing more quickly than we can assimilate. An antiques dealership near to the Ambassador was sold for flats in spring; and across the city, squatters are now occupying the Gimcrack Hotel, also awaiting development.

Pubs, working men's clubs, care homes, garages: the list of long-standing and valued services being turned into homes is growing. This should ease York's housing crisis, although most of the conversions are for flats way out of the range of those on the waiting list; but at what cost?

Updated: 10:40 Friday, May 30, 2003