The Scottish Government has rejected plans to build more than 400 student homes on the site of a former BT yard in Aberdeen.
The proposal for the area on Froghall Terrace, which was launched by BT and Telereal Trillium, was rejected by the city council’s planning committee in September.
But the applicants decided to launch an appeal to the Scottish Government which has now been turned down.
Under the plan 80 residential apartments would have been created alongside accommodation for 425 students.
The move generated large opposition from nearby residents who claimed it was an “overdevelopment” which would lead to lack of parking spaces.
Councillor Michael Hutchison, who represents the George Street and Harbour ward, welcomed the decision.
He said: “This a fantastic victory for those from the local community who have campaigned against these plans for 18 months.
“The local residents and community council who have objected to this were clear from that start that this application would have had an unacceptable detrimental impact on the amenity of their neighbourhood.”
A report by the Scottish Government said it would “adversely affect” the locality.
It said: “I conclude that, because of the combined effect of the length of each side of the proposed student accommodation building, its proposed height and proximity to the site boundaries, that part of the proposed development would have an unacceptably harmful effect on local character and amenity.
“I also conclude that the proposed development would be likely to add unacceptably to on street parking in the vicinity, adversely affecting the character of the locality and the operation of the highway network.”
A spokesman for BT said: “We are naturally disappointed at today’s decision.
“The proposals would have delivered 80 new homes, 20 of which were affordable, and accommodation for up to 425 students.
“We will now review in detail the decision and the reporter’s findings before deciding how to proceed.”