A FORMER haunted house belonging to famous York astrologer Jonathan Cainer has been acquired in an £800,000 deal which is set to see the property become a restaurant or shop.

The Grade II listed building in Stonegate, which dates back to the 15th century is known locally for having a wooden bible hanging above the door, has been bought by Wetherby-based The Oakgate Group.

It is the company's11th deal in what bosses have described as "Yorkshire's most prestigious retail street".

John Grantham, chief executive of Oakgate, said: "This building is an absolute gem, with a rich and varied history. Once we have completed our sensitive interior and exterior refurbishment programme, which includes a new glazed courtyard area, there will be prime retail and leisure space to let in the very heart of York. We expect strong levels of interest from across the UK."

Daily Mail astrologer Jonathan Cainer, who lives in nearby Fulford, bought the premises in 1999.

Although the timber frontage dates back to the 15th century, the real story of 35 Stonegate began when Francis Hilyard opened his famous bookshop The Sign Of The Bible there in 1682.

According to John Hutchinson and DM Pallister in their Bartholomew City Guide to York, novelist Laurence Sterne lodged for a time in York.

The Stonegate premises remained as a bookshop until 1873, when glass painter John Ward Knowles acquired them.

The Knowles family continued their stained glass business there until 1931 and lived on the premises until the 1990s.

Unbeknown to the shoppers, the house’s cellar extends a long way beneath their feet into the middle of Stonegate.

Mr Grantham said: "This is another deal which demonstrates the strength of the York commercial property investment market.

"The city remains an extremely attractive proposition for would-be investors and occupiers, with its wealth of history, its superb transport links and its quality of life.

“On a more personal level, we are very proud to have acquired one of York’s most historic buildings in the city’s premier retail street. We are confident of finding an occupier who will do full justice to these splendid and unique premises."