Squatters who transformed an empty building into a community art gallery are celebrating after councillors turned down plans to build flats there.

The 491 Gallery in Grove Green Road, near Leytonstone Tube station, has been occupied for years, since its previous owners, Transport for London, left it derelict.

It emerged last year that a property developer had bought it and submitted plans to the borough council to replace it with flats.

But Earle Martin, who is helping fight the plans, said the council had thrown them out at a meeting last night.

The gallery's Twitter account read: “The application was denied! The 491 is saved for the time being from demolition. Thanks to all who spoke.”

The exact reason for refusal is yet to be confirmed.

ATM Developments, which submitted plans for flats at the gallery last year, is understood to have spoken to squatters at the gallery and agreed to give them time to move out if planning permission is won.