YORK'S property boom has sounded the death knell for another city pub and restaurant.

The Starting Gate, in Tadcaster Road, will be closed before Christmas and then sold to developers for housing, subject to planning permission.

The closure is the latest to hit pubs and clubs across the city as spiralling land prices make re-development a lucrative option.

The Frog Hall in Layerthorpe has shut to make way for a scheme including a drive-through burger bar and the Gimcrack in Fulford Road looks set for residential development after closing recently.

Clubs which have shut their doors for the final time include the Layerthorpe Working Men's Club and the City Arms near the Barbican, both of which will be used for housing. The Irish National League Club in Speculation Street has also shut down.

The Starting Gate decision will throw more than 20 full and part-time staff at the Beefeater Restaurant out of work, although employees will be offered jobs at other outlets in owners Whitbread's portfolio of businesses.

Customers who had made Christmas bookings are being informed of the closure.

Spokeswoman Lesly Hughes said there was "never a good time" to close a restaurant.

"It is a big and lucrative site from a cold commercial point of view in terms of creating revenue for our shareholders.

"It makes more sense to sell than to continue trading - it is no reflection on the team at the Starting Gate, who have done a sterling job."

One customer today condemned the closure as "another kick in the teeth for York residents."

Mark Taylor, of Wigginton, a regular at the Starting Gate for 12 years, said: "This deprives York of another family pub at the cost of out-of-reach overpriced housing. I'm pretty gutted."

A member of staff, who asked not to be named, said workers were told the business was to be sold as a "going concern" in September but it became clear this was not the case last week.

He added that many staff members were concerned at the timing of the decision, which my leave them without work over Christmas, one of the busiest times of the year.

Frank Cartin, president of York LVA, said today he would be concerned if there was a growing trend for pubs to shut to make way for housing. "They are the focal points for the community. They have their own football teams and so on, and when they shut, everybody has to try and find somewhere else," he said.

Updated: 11:33 Wednesday, October 30, 2002