The Bishop's half-mile move, to the former All Saints' Vicarage, Burnley, follows a review of his official home that revealed the need for costly repairs.

Dean House has been the home of the Bishops of Burnley for 25 years and "has been a considerable drain on diocesan resources since its purchase", said a Church statement.

Its rent, or sale, will reduce these costs and give the Blackburn Diocese time to assess the housing needs of future Bishops, said Bishop John.

He established his private chapel, with an altar and icons on the walls, in a large garden shed after he became Bishop in 2000. "While I have sadness about saying 'Goodbye' to my shed, I'm only moving half a mile down the road and hope to remain as fully involved as ever in the area," he said.

The Bishop's chapel, built locally in Lancashire, attracted international media attention when Bishop John dedicated it for private prayer and reflection, and occasional services for some of the most compact congregations in the Church of England.

"The shed has served its purpose," said Bishop John. "I regret very much not being able to take it with me. But we move on, where our ministry calls us."

The Bishop said he had enjoyed living at Dean House, but the money now needed for refurbishment was "inappropriate" in a Diocese needing funds for more urgent priorities.

He will establish an office and chapel in his new house and also use his personal home at Tarleton "for a complimentary pattern of ministry including hospitality and meetings". He expected to spend most of his time in East Lancashire.

"I'm committed to Burnley: I have always worked in urban priority areas," said Bishop John. "To find myself away from Burnley would be a big mistake. Neither does this mean I am retiring; I could well serve for another eight years.
'Nor does this mean there will not be another Bishop of Burnley. This time and space will give the Diocese time and space to determine the residence of a future Bishop."