Jessica Learmond-Criqui, left, is among campaigners  who say the final decision does not guarantee all services will be protected

The Hampstead village post office will remain open – but is set to be part of a new franchise and not directly run by the Post Office.

The changes to the branch on Hampstead High Street come as users and neighbourhood groups had called on Whitehall to ensure the branch remained in place after fears it could close completely.

The government decided this week that a number of directly managed branches would now become franchises – and the Hampstead branch will now be managed by UOE, a firm that manages nine other “main branch” post offices.

Hampstead resident and activist Jessica Learmond-Criqui had helped rally support to keep the branch open.

She greeted the news with scepticism.

She said: “It is really important – it is about keeping people connected, about having access to a genuine range of services.

“Any franchise will of course be looking at profitability – and that could mean services they don’t find worthwhile are scrapped. But the point of the post office should be to offer a wider range of services to the community.”

She added that many were worried about the long-term viability of the site.

She said: “Will the franchise want to move somewhere more affordable? It is a big site with parking and is very valuable. Many fear it will be a similar story to the sale of the Hampstead police station – there is a real fear that eventually the Post Office will sell the site.”

She said that the move to turn the last centrally managed branches into independent offices to help a struggling business model could be at the expense of customers.

She added: “It is a political decision. But the Post Office is not meant to be a purely commercial venture. It has been taxpayer-funded for years.”

In April, the Heath and Hampstead Society sent an open letter, co-signed by Hampstead and Highgate Labour MP Tulip Siddiq, urging Gareth Thomas MP and Nigel Railton, CEO of the Post Office, to reconsider the overhaul.

The MP said she was pleased the branch’s future was secure, regard­less of the ownership. She said: “I am delighted the post office will stay open.

Throughout this uncertain time, I have raised the concerns of the community with officials at the Post Office, the Post Office minister and in parliament.

“I know how much the branch means to people. It is a lifeline for my most vulnerable and elderly constituents, providing critical banking services at a time when our banks are disappearing from our high street.

“I appreciate many of my constituents may have anxieties about a new operator, and I am working to make sure that the community have the opportunity to raise their concerns directly with the Post Office and the new Post Master.”

The Heath and Hamp­stead Society’s Town committee chairman, Peter Kohl, said the neighbourhood were united in their determina­tion to see a post office remain in place – and they would welcome the new team.

He said: “The community here in Hampstead village agreed on the importance of it – the support was universal.

“Every neighbourhood group and association looked to do all we could to support the post office and to make sure it is maintained.

“It is a transition for the branch. We have been given assurances it will maintain services and will also bring a new retail offering, which is nice, and we welcome a new member of the community here.”

He added that the concept of a franchise was deeply embedded in post office culture, with many independent businesses and not directly owned by the state.

He said: “There was a risk to the post office, whoever owns it.”

A Post Office spokesperson said: “Hampstead post office is to be franchised and operated by highly experienced company UOE from its current location from later this year. We would like to reassure customers that it will still offer the same full range of post office services.

“In April the Post Office confirmed that it is moving to a fully franchised network as part of enabling the Post Office to deliver a ‘New Deal for Postmasters’, which will help to create a long-term, sustainable future for the Post Office. We pledged that no DMB will close and that a branch will stay at or near its current location. Any relocation would be sub­ject to public consultation.

“As part of the franchise process, we selected candidates to operate the last remaining directly managed branches that have a clear track record of success­fully running branches and have the capacity and resources to take on branches in multiple locations. UOE already operates branches in Muswell Hill and East Finchley.”