PANIC erupted when residents spotted dense smoke coming from Cane Hill.

Firefighters were called last Friday to the former mental health asylum in Coulsdon after a concerned neighbour spotted the smoke.

As Cane Hill's chapel and admin building are locally listed fire crews feared that the site of historical beauty could be destroyed.

But after scouring the land at 4.30pm they became convinced it was a false alarm.

Teacher and amateur historian Brenda Kidd, who lives near Cane Hill, said she was relieved the site had not caught alight.

She said: "When I heard I jumped in my car and as I was approaching the back of Cane Hill I could see dense smoke and it did look like it was on fire.

"After running around for a bit you could see all the buildings were safe but the smoke was still billowing.

"I was so relieved our historical site was not alight."

A London Fire Brigade spokesman confirmed they were called out and there was no fire on the site or anywhere else.

Cane Hill, which is owned by the Homes and Communities Agency (HCA), is earmarked for redevelopment.

The HCA is working with Croydon Council to create a masterplan for the main sites.