demolition because of the pressing need for more space

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Hi, everyone.
This is from <Incurable Romantic> by Frank Tallis.
I don't get the underlined sentence.
Does it mean that the house escaped demolition because it needs more space?
Who needs more space, the house or the local council?

My office was in an Edwardian terraced house next to the hospital grounds. It was used as an outpatient clinic. I was told – before starting work there – that the building had been repeatedly inspected by the local council and condemned. The house always escaped demolition because of the pressing need for more space. I laughed, assuming that the story must be apocryphal, but one morning I opened the door to the consulting room and half of the ceiling had fallen in.
  • DonnyB

    Sixties Mod
    English UK Southern Standard English
    The author was working in a psychiatric hospital, so it's the hospital that needed more space to treat the patients. :)
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