The owner of Yaxham Mill has reassured customers that he is fully committed to the popular pub and restaurant near Dereham after a notice appeared in the EDP yesterday advertising five holiday cottages on the same site for sale.

Concerns were raised in the village over the future of the pub, which also boasts a fully converted mill house, fearing the loss of their last licensed premises in Yaxham but owner Ray Newton said this was not the case.

'Absolutely not,' he said. 'I can see that there might be some misunderstanding but we are fully committed to the pub and all the staff are aware.'

The Victorian holiday cottages for sale run down the left hand side of the pub and include two two-storey cottages and three single-storey cottages that were converted about six years ago, just before the whole business was bought by Mr Newton.

William H Brown, which is marketing the sale, is suggesting a guide price in excess of �250,000 at auction for the five and accounts show that they bring in a return of more than �50,000 a year.

There will also be a second lot for sale in the auction which takes place on March 3, a building plot with detailed planning permission for four more holiday homes on land behind the mill.

Mr Newton, who lives in Rickinghall, near Diss, added: 'We would like to reinvest the money from the sale in the pub and restaurant and have a few expansion plans in mind. The business is doing well and is busy enough, people like what we do here. The mill tower is also not for sale - my daughter lives there and I don't think she would be too pleased if we sold that.'

For more auction information visit www.williamhbrownauctions-norwich.co.uk or telephone the agents on 01603 598975.