The music venue and club, owned by Bill Davison of Purplehaus, hosted bands such as Keane, The Arctic Monkeys, the Scissor Sisters and The Killers before they hit the big-time.

But after planning officials allowed permission for a block of flats to be built across the road from the building, in Great Russell Street, The Mounts, Mr Davison has said he fears noise complaints from future residents could lead to action being taken against the venue.

Announcing his decision to pull the plug after eight years, he said: "The flats will stand just 30ft away from the front doors of the Soundhaus. The implications of this are obvious.

"If someone rings Environmental Health about the noise then they will be more than happy to come out and police it."

The announcement comes after news this week that a West Northamptonshire Development Corporation (WNDC) move to stop the demolition of the former Top of the Town nightclub, opposite the Soundhaus, had been overturned by a national planning inspector. The decision paves the way for a four-storey block of flats and offices to be built.

With the Soundhaus in the last year of its lease, Mr Davison said he was unwilling to commit to 20-plus more years of possible noise complaints.

About 30 staff at the Soundhaus will be made redundant by the move, which will happen before the end of the year.

Angela Phillips, a manager at the venue, said it was irreplaceable.

She said: "I'm really, really upset. Yes, we still have Roadmender but it's not the same.

"It was our rock venue. It was the only thing that had rock stuff going on and I think we've lost something big."