DEVELOPERS have won the right to transform a historic York building into a top class housing complex despite planners' reservations.

European finance firm ING Real Estates wants to convert the former County Hospital, overlooking the River Foss, into high-quality accommodation.

The scheme, which also includes a new 10-unit block of mews apartments next to the listed building, would create 61 separate flats to be rented out by the company, which runs similar properties in Edinburgh, Oxford and Windsor.

City of York councillors had hoped the development would include affordable accommodation, making it accessible to ordinary residents.

But, according to the firm's UK director Peter Davies, this, along with any attempts to restrict the size of the project, would make it too expensive.

"We see County House as an opportunity; however, the cost of converting a listed building to our standards and creating the necessary levels of return makes it unprofitable to support affordable housing," he told a meeting of the council's planning and transport committee.

Earlier, objections to the scheme were received from Vanessa Smith, a resident of nearby Monkgate Cloisters.

She claimed the development, which has no provision for visitor parking, would create problems for existing householders, and expressed fears for the safety of several large trees in the area.

David Strickland, the architect behind the scheme, said the scheme would attract elderly occupants who would not use cars and the trees, which lie in a conservation area, would be protected by preservation orders.

He added: "These properties are a golden opportunity to safeguard this building and get people living back in the city centre, in line with the council's policy on sustainable living."

Committee vice chairman Derek Smallwood said, although councillors had reservations, they opted to approve the plans.

"We were concerned that there was no contribution to affordable housing, but we were given reassurances about the nature of the scheme and we believe these are satisfactory."

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