I don't think you can place in that spot.... it's in the guard zone.......
Fel side may be different though, as a lot of older grandfathered homes are still in their original positions on some servers, when housing was allowed just about everywhere.. oh so long ago. I could be wrong about that, though as its been a while since I've been through that part of Vesper.
And as someone mentioned up thread, on LS we have one of the checkpoints for the Royal Britannian games in that spot. Tearing down GM/EM event items never goes over well on LS. I'm still ticked off about the Eternal Fire that was mashed up in Yew when Heartwood opened. Decorations like these are what make each shard unique and give them their own personal flair and history. (I have a bunch of screenies from unique places on LS, that I enjoy flipping through personally.)
I'd much rather see one of the unused buildings in town be turned to a stable, or redo the map in that little area to accomodate the addition of a stable (as that area does seem to be the most logical place for a stable.) Perhaps the guard station could be resized to a guard post and a stable could take up part of the converted space.
For the time being, someone should try to get ownership of a house in that area and make it a public stable.. with a hitching post. Make everyone you know a friend of the place, and have a box for donation of hitching ropes. Hold events to collect the items needed to make more ropes, etc. Include it in your roleplay.. perhaps put it on the north side of Vesper and you and the other roleplay guilds can take turns taking over ownership, etc.. get your shards EMs involved, and perhaps you can talk them into at least making you something more permanent.
Whatever happens.. don't give up.. Cove eventually got a bank. Frankly, this is an area of the game, I'd like to see the Devs really put some work into.. revitalizing the old Britannia.. nothing would bring more "Ultima" back into the game than spending time and effort on the parts of the game that were actually part of the Ultima games (SA aside.)