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The future of Smithfield market is in doubt after it emerged that Henderson鈥檚 lease on the buildings does not expire until 2020 and that the developer may decide to hold on to the site until then.

The developer, whose redevelopment of the site , also has a 999-year lease on the basement, putting it in a strong position to carry out its threat to leave the site in Farringdon empty.

It currently rents out the basement to Crossrail, which uses it as part of the neighbouring construction site, and BD understands this brings in enough money to cover its costs.

But president of campaign group Save, Marcus Binney, accused Henderson of having a 鈥渞eal sulky dog attitude鈥� and threatened to get a repairs order served on them.

鈥淚t鈥檚 a very unfriendly thing to do to London which shouldn鈥檛 have boarded-up sites looking little better than bombsites just because people won鈥檛 use or relinquish buildings.

鈥淚t鈥檚 been through the entire planning system and a public inquiry and the inspector ruled that there had been deliberate neglect.

鈥淭his is not a responsible way to deal with a heritage asset and if necessary we鈥檒l press for a repairs order to be served on them.鈥�

Chris Costelloe, director of the Victorian Sociey, said he was hopeful that 鈥渞eason and rationality will win鈥� and that Henderson would choose to dispose of the site.

Yesterday Henderson and its architect John McAslan & Partners unexpectedly lost a public inquiry after communities secretary Eric Pickles ruled that their 拢160m proposals were 鈥渨holly unacceptable鈥�.

The minister agreed with the inspector鈥檚 conclusion that there was 鈥渘o pressing need for offices in this particular location sufficient to justify such a harmful intervention鈥�.

Geoff Harris, head of development at TIAA Henderson, accused its opponents of running a 鈥渄isingenuous campaign鈥� and said the McAslan scheme was backed by English Heritage, Cabe, the City of London, the mayor and Smithfield Market Tenants鈥� Association.

鈥淥ur scheme would have saved and brought back to life these Victorian market buildings that have lain empty for decades,鈥� he said. 鈥淭his decision will condemn these disused historic buildings to continued decay and yet further uncertainty.鈥�

A source close to the developer said Henderson rejected the inspector鈥檚 report outright, along with its contention that a rival proposal put to the inquiry by developer Cathedral, architect Burrell Foley Fischer and market entrepreneur Eric Reynolds was 鈥減ossible, viable and deliverable鈥�.

Henderson鈥檚 view is that there is no credible alternative and that the best thing for its shareholders would be to sit on the site and draw a rental income, said the source.

Costelloe said six years was 鈥渜uite a lot of crumbling time鈥� but pointed out that the lease obliged Henderson to maintain the buildings.

鈥淚 can understand they are feeling a little sore but it鈥檚 in no one鈥檚 interest that this site lies empty,鈥� he said.

鈥淭hey are a major developer and I don鈥檛 think they are going to act spitefully. It wouldn鈥檛 do their reputation or their balance sheet any good.

鈥淢uch better to put it on the market and allow a conservation-led scheme to emerge that would reanimate the area.鈥�