A developer's application to build homes on land allocated for employment use has been refused because of an upturn in demand for office space.

Councillors at last night's meeting of City of York Council planning committee discussed an application made by Green Property to build 69 homes on land behind properties at the junction of Foss Islands Road and Lawrence Street.

The brownfield site has been empty for some years, but planning permission for office development was granted in 1998.

Paul Fagg, agent for Green Property, spoke to councillors at the meeting about his client's application.

He said: "This will be 69 housing units and 25 per cent will be affordable homes. We acknowledge this council will seek to protect employment uses, but this site has been vacant for many years despite being marketed by our client.

Coun Derek Smallwood said: "There's clearly a very good opportunity that this site will be sought after as a business site because of the development that's going on in the rest of Foss Islands Road."

The application was refused.