The eight volunteers – including chairman Graham Wragg, in front of the Winding House – are now hopeful they can apply for funding to turn the building into a useable community space, than see it knocked down or turned into flats. There had been fears for the building on South Bridge Road after a second bid for funding failed last year and Hull Council announced its intention to sell the property. The volunteers plan to use some money already raised to start renovation on the fast-deteriorating property.

Committee member Debbie Burman said: "People want the building to stay as an icon of the time when this area was a vibrant working dock. This decision is great news because it means we can at long last start renovation work.

"However, we have to start fundraising in earnest and try again for grants as the work will cost in excess of £200,000."

The decision was made at a meeting of Hull Council's asset management committee, with the council reserving the right to terminate the agreement if an agreed scheme of works is not completed in three years.

The 140-year-old Winding House stands at the heart of the dock and was used to operate huge chains that hauled ships up the slipway for repairs.

Picture: Terry Carrott.