A luxury housing developer has been chosen above a school to redevelop a site in Marylebone.

Marylebone Boys School, a new free school set to open in September 2014, continues its search for a permanent home after Westminster Council rejected its bid to move into an empty council-owned site in Moxon Street.

Labour councillors have slammed the Tory-led authority for selling the one-acre site, which they say was ear-marked for education, to Ridgeford Properties and Concord Pacific for a £250million development of luxury apartments.

Laura Royde, lead proposer for the school, said: “It is a shame.

“However, the Education Funding Agency, on our behalf, is in negotiations with Westminster Council about another site in the Marylebone area.

“I hope a decision will be made soon because it’s so hard on parents who we are trying to help get school places. The applications deadline for secondary schools is 31st October.”

Councillor Paul Dimoldenberg, leader of Westminster Labour group, said: “Westminster Conservatives have betrayed local parents by selling this land for luxury apartments. The last thing Marylebone needs is more luxury flats.
“Residents want good community facilities, such as good local schools.”

The project, off Marylebone High Street, will include both private sale and affordable housing, a restaurant, retail and community uses, as well as reinstating the former Marylebone Farmer’s Market.

Westminster Council said earlier it had an obligation to ensure it earned the best profits from its assets on behalf of residents.

Councillor Jonathan Glanz, cabinet member for housing, said: “This development will transform an under-used car park into a flagship multi-use asset that fits the site’s location in the heart of Marylebone.”

The development could commence work next year, pending planning consent.