The Charity Commission has reversed its original decision to allow the charity that looks after Arundells, the £6m home of former Prime Minister Sir Edward Heath, to sell the property.

In a decision issued this morning, the regulator said that after considering all representations from interested parties on the issue, it is not convinced that the trustees have adequately explored all other means of raising income.

The ruling overturns an earlier move by the Commission to create a draft scheme that would allow the trustees of the Sir Edward Health Charitable Trust to sell the luxury home, which is located in the grounds of Salisbury Cathedral, and its contents.

Five years after Sir Edward's death at the age of 89, the board wanted to sell the house and distribute the proceeds to various organisations specified in his will.

But they met heated opposition from a group of campaigners who wished to run the house on a voluntary basis and assure its survival as a tourist attraction.

After the Commission published the draft scheme in May, it received around 200 representations, most of which opposed a sale. Staff from the Commission met the main parties, including the chair of trustees, and concluded that the scheme should not be made to give the trustees permission to sell.

“The reviewer in this case is not satisfied that the trustees have adequately explored the range of alternative ways of generating income,” The Commission said. “Four of the six charitable objects of the charity relate specifically to Arundells and the reviewer considers that continuing to own Arundells is an integral element in the charity’s purposes.”

It concluded: “The Commission recognises the current financial position of the charity and concerns over future costs and repairs, as well as the genuine commitment of the trustee board to want to act in the best interest of the charity and its current and future beneficiaries.

"However the Commission is not minded to grant the scheme before all other methods of generating funds have been explored.”

The reviewer advised the board to seek fundraising advice and consider appointing additional trustees with marketing or event-management experience.

The house was Sir Edward’s home for the last 20 years of his life and first started taking visitors in 2008.

The Commission did not prevent the board from applying for a new scheme at a later date.