The privately-owned former hotel in Ruettes Brayes – once known as the Flying Dutchman – has been operating as a lodging house in recent years.
The land is one of the housing target areas and the planners have said they believe having between 10 and 20 homes would fit well within the site, with a mix of two- and three-storey buildings.
Valerie, 83, and Derrick Hallett, 84, have lived next door to the site for 10 years.
But Derrick built the house in 1971 for a family member, so they are very familiar with the area.
They said the current tenants of the building were not ideal.
‘We get enough trouble from them,’ Mrs Hallett said.
‘We pick up rubbish and beer bottles. We see bags of rubbish over the wall and in the hedge. But I don’t think having homes there will improve that.’
Full story in Saturday's Guernsey Press