Mandale Construction North had initially proposed to develop the Custom House, on the corner of Guild Street and Stirling Street, into a 105-bedroom hotel.

Councillors unanimously approved the plans in December last year.

But the Teesside-based property firm separately sought permission to turn the building into 46 flats and has now been granted approval.

The unoccupied building will have a shop on the ground floor as well as one and two-bedroom flats.

Mandale plans to start giving out keys to the flats by early summer.

Operations and sales director, Richard Harriman, said: “The city is rich with heritage, and it has been a privilege to work with the council to deliver a residential scheme that turns its past into its future.”

There are no set plans for the building’s ground floor unit, and Mandale Homes is “taking inquiries from a number of different businesses to take the space”.