In October 1998 a second Public Inquiry was held following the call in of another application for Listed Building Consent to demolish the Hall. The Inspector recommended consent should be granted for demolition. This was accepted and on 29th June 2000 the Secretary of State "reluctantly" granted Listed Building Consent on the basis that:

"the cost of restoring and refurbishing it for some new use seems likely to exceed its subsequent value in economic terms "

However, this decision was made subject to a Section 106 agreement. The draft agreement, between Liverpool City Council and the landowner, was presented at the Inquiry and contained the following clauses:

1. "The Owners agree and undertake with the Council that they will not undertake the demolition of the Building unless the features have been removed from the Building in accordance with a Scheme which shall have been prepared by the Owners to which the council has signified its agreement in writing"

2. "the Scheme shall include a method statement which shall deal with the following matters; the removal of the Features in such a manner as to be specified by the Council; the handing over of the Features into the ownership and possession of the Council"

3. the rebuilding, display and maintenance of the Features

The loss of Sandown Hall was a tragedy for Wavertree and for the wider historic building movement. The Secretary of State's decision letter makes clear that the decision to permit demolition was exceptional and regrettable and that legal provision was made for some form of continuum for the Hall.