Plans have been submitted for a controversial site opposite Hampton Court Palace which will "transform" the neglected area, it was claimed this week.

But Historic Royal Palaces (HRP), the charitable body that runs the palace, has expressed grave concerns over any development on the site and spoiling views from the Surrey side of the River Thames.

Elmbridge Council has received a proposal drawn up by developer The Gladedale Group, in consultation with Network Rail and the Royal Star and Garter Homes, for the area around Hampton Court Station, known as the Jolly Boatman site, which has been derelict for more than 20 years.

The plans include a hotel overlooking the river, a refurbished station building, 61 apartments, five mews houses and a new care home for the Royal Star and Garter Homes charity, providing accommodation for disabled elderly ex-service men and women, with a large riverside terrace stepping down to the river.

Paul Lemar, land and planning director for Gladedale, said the proposals provided an opportunity to transform the area, and provide a wonderful first impression for visitors while Vice Admiral Sir John Dunt, chairman of the board of governors of the Royal Star and Garter Homes, described the site as perfect for the home.

John Barnes, director of conservation and learning at HRP, said the charitable body objected to any development on that site but had not yet seen the final designs.

"We have had concerns in principle about developing that site from the minute it was suggested," he said. "Because it is an area of land we think should remain undeveloped."

"The scale of development we have seen is completely out of character with the area it sits in.

"We are not against progress but progress has to be carefully thought through and our view is that they should not be developing the Surrey riverbank.

"We think it is regrettable that Elmbridge Council produced a planning brief and problems with the site, which is on a flood plain, re-confirm it is the wrong place to develop."

Brian Rusbridge, joint co-ordinator of the Hampton Court Rescue Campaign, said: "The Hampton Court Rescue Campaign will comment when we have had the opportunity of seeing the full planning application and environmental impact assessment."