The owners of a care home at the centre of huge controversy over plans for it to be sold to house asylum-seeking teenagers say they have pulled out of the deal to sell it.

Kent County Council (KCC) proposed to house 50 people aged 16 and 17 in Ocean Heights Residential Home, Seaside Avenue, Minster, Sheppey.

In a letter sent to residents last Thursday, it said work on the care home would start “very soon” with people moving in as early as May.

However, the local authority has now confirmed the move will not be going ahead.

KCC leader Cllr Roger Gough (Con) explained: “It is disappointing to have to confirm that Ocean Heights on the Isle of Sheppey has been withdrawn from sale.

“The building was one of seven additional facilities we identified to supplement the two existing reception centres for unaccompanied asylum-seeking (UAS) children.

"These buildings, funded by central government, will increase our capacity to accommodate and care for all UAS children arriving in Kent, as required by the High Court.

“We have been transparent about the arrangements for all centres as temporary homes for children, aged under 18, as set out on our website.

“Given our legal responsibilities, and the High Court’s direction, we are establishing the additional reception centres and will identify other suitable locations to accommodate the increasing numbers of unaccompanied minors arriving on our shores.

“We will also continue pressing government through all routes, including judicial, to ensure the National Transfer Scheme works and all local authorities take their responsibility for the care of UAS children – ending the intolerable burden this national issue places upon Kent".

Ocean Heights owners, Liz and Ernie Batten, issued a statement last night to say they had pulled out of a deal with KCC.

The pair said they were approached by the body to provide residential accommodation for UAS children, and planned to go ahead with the plans.

However, they have now reversed their decision after admitting they were disappointed about the letter to residents as it was sent “without prior agreement” before a final decision had been made.

A statement from the pair read: "We recently attended a meeting with KCC managers who advised us of the full details of the proposed use - the home would only be a reception centre for older youngsters, typically 16 to 17-year-olds.

“The average stay would be 10 to 14 days before being moved to a more permanent place to live.

“In respect of the recent letter from KCC sent to residents, we understand KCC needed to address the growing speculation by providing clear communication.

“But we were disappointed that such a letter was sent out without prior agreement in advance of a final decision.

“We considered all the facts of the proposed use and have advised KCC of our intention to withdraw from the transfer."

Mr and Mrs Batten, who also own Little Oyster Residential Home in Seaside Avenue, say the property will now return to its original use.

“Ocean Heights will soon be commissioned to start providing quality residential care for the elderly and disabled residents in a luxury setting. We hope this will serve to fill the void created by local closures," they added.

“We apologise for the delay in announcing our position but this has been due to legal restrictions.

“We would like to thank our current staff and residents for their understanding during this period and apologise to the local community for any distress this may have caused".

A protest took place on Saturday where around 80 people turned up at Minster Leas.

Four people, including resident Fiona Mowatt, of Southsea Avenue, called the meeting.

She says it was carried out as Ocean Heights was established to be a care home for the elderly.

Ms Mowatt says the weekend’s demonstration was to raise awareness of residents’ needs on Sheppey needing to be “prioritised first and foremost”.

A Facebook group set up by residents opposed to the plans attracted more than 5,000 followers.

Meanwhile, at Wednesday’s Swale Council meeting an urgent motion was put forward by councillors Thomas Nundy and Peter MacDonald (SIA, Minster Cliffs).

It called on Swale councillors to condemn the lack of transparency in the process taken by KCC and the Home Office to use Ocean Heights as a site to house UAS children.

It urged leader of the council, Cllr Tim Gibson, to write to KCC asking it to take on Ocean Heights as a care home to support vulnerable and elderly residents on the Island instead.

It comes after KCC’s sudden closure of Blackburn Lodge care home in Sheerness, which led to all the elderly residents having to move out at short notice.

Yet only eight councillors voted for the motion, with 25 voting against and seven abstaining.

It emerged, however, that KCC and Tory representative for Sheppey, Cllr Andy Booth, had known about the plans for five months.

He said: "Sheppey is not a deprived Island.

"It is no different to Faversham or Sittingbourne in that there are pockets of deprivation.

"The vast amount of communications I have received have racist undertones, and offer utterly disgusting and disgraceful elements.

"There are suggestions of paedophilia, gang raping and throat-slitting of the residents of Sheppey while they sleep.

"I have to read that [from] emails I have received, which number less than 30.

"So when we hear that there is a particular social engagement group which has 5,000 names upon it, let us be under no illusion that it is quite likely the initiators of this disgraceful attack, on factually terrified young people...has potentially been put about by undertones of racism.

"I have known about this for nearly five months, but have been under a confidentiality clause, and not one councillor has come to me as a KCC representative of the Isle of Sheppey which says a lot."

Meanwhile, Cllr MacDonald insisted he was very disappointed other councillors were not informed about KCC's plans.

He said: "We weren't consulted on this proposal.

"Cllr Booth had the audacity to say he had known about this for five months, but I knew nothing about this until around a week ago.

"It has been negligent that elected representatives have not been spoken with.

"It couldn't have happened at a worse time either with the disgusting way Blackburn Lodge has happened."

Cllr Nundy says he was proud to “give a voice to the residents I represent who felt that their voices were not being listened to”.

Many residents voiced their concerns about KCC’s proposal.

David Kelly, from Minster, said: "Care homes are closing all over the place.

"My wife and I only heard about it when the news came out recently, so I was surprised by it all.”

Nichola Francis added: “The point here is our children and elderly do not get the care and help they need.

“The elderly home, Blackburn lodge, is being shut down.

“The state of Oasis school has been all over the news.

“I really think we need so many other issues dealing with here.”