The future of The Fountain in New Malden remains uncertain after councillors voted to defer a decision on a planning application to halve the pub and build 43 flats.

They said New Malden deserves a better-designed development, and the site being a “gateway” to the town means more work is needed to bring the proposals up to scratch.

Plans involve cutting the pub from 413 sqm to 214 sqm, removing twentieth-century additions, and building three to five-storey blocks of flats as well as a shop or cafe.

Liz Meerabeau, chair of New Malden Residents Association, told councillors: “In New Malden, we aren’t posh and we aren’t fancy, but we do care about our heritage buildings, and we don’t want them swamped by overbearing blocks of flats.

“Nor do we want to lose amenities such as the car park, the pub garden and the flower stall, which brightened that corner.”

The Fountain car park has been used by the New Malden Farmers’ Market and the Korean Festival; the former has found a new home in the High Street.

Chris Miller, pub protection officer for the Kingston and Leatherhead branch of the Campaign for Real Ale, said: “We hope that in the application being deferred, the developer gives further thought to the pub.

“The serious loss of space reduces considerably the community facilities, including the upstairs meeting room and staff accommodation as well as the car park and the informal space the pub provides.

“These reductions, we believe, significantly affect the commercial viability of the pub.”

Deputy council leader and portfolio holder for planning policy, culture and heritage, Cllr Malcolm Self, said at the meeting the borough needs more housing, so the application could not be refused on size or density grounds.

But he said he had concerns with the design, about how the housing related to the Fountain pub and the Watchman pub opposite, and proposed deferring the decision until a later committee.

He said: “As you arrive in New Malden, that’s what you are going to be greeted with, and I think New Malden deserves better.

“I would want to see much more of a landmark building there that actually welcomes people to New Malden.”

Suggestions from councillors, who promised to work with the developer to improve the design, included improving the nearby fountain roundabout and getting the fountain working again.