Concerns have been raised about the future of Endsleigh House at Bedford Hospital due to become uninhabited when a nursery shuts this summer.
When the Apple Tree Day Nursery closes on August 1 the building will be empty.
Cauldwell ward councillor Sue Oliver said: “It’s a disgrace the owners have allowed this block to fall into disrepair with local people crying out for one bedroom properties because of the Government’s bedroom tax.
“I’m dismayed Bedford borough’s highest concentration of long-term empty properties is in the middle of my ward. If this building really is unsafe it should be demolished immediately. If not, perhaps it should be sold to a housing association to provide much needed smaller homes for many of our residents.”
A Bedford Hospital spokesperson said: ”It is an old multi-storey building. Due to its poor condition and the presence of asbestos it is not fit for purpose and cannot be used in its current state.
“The building’s use is being reviewed as part of modernisation plans for the site, including it being demolished or investment to remove the asbestos and redesign the building for modern purposes.”
A document obtained by the T&C revealed that £250,000 was earmarked for demolishing it in a long-term capital investment plan as far back as 2010-11.
The spokesman said this cash has since been re-prioritised into other capital projects, as no decision about the building had been made at that time.