A SECOND sex shop in Chatham's growing red light district has been refused a licence - because the neighbourhood is changing.

Medway's licensing committee said the High Street area has become a residential area after years of decline.

The decision now calls into question the future of the Private Shop, which has successfully renewed its sex shop licence for nearly 20 years. It is next door to the premises where a Cambridge businessman Marc Lewis, and his Bright Lights company had hoped to open the new shop.

The chairman of the committee, Cllr Diane Chambers, said the application was refused because of the significant changes which have occurred in the area. She said there was a mix of homes, shops and education establishments which made a sex shop "inappropriate".

Capt David Barrett, who lives a few doors from the existing shop, said: "I am very pleased to have won our case. This is going to be a great help to the residents." He had told the committee of problems caused to residents by the 76 prostitutes who frequent the area.