Plans to build more than 400 student homes and up to 80 flats on the site of a former BT yard in Aberdeen have been rejected by the Scottish Government.

Under BT’s plans, which were designed by Allan Murray Architects, 425 student bed spaces would have been created on Froghall Terrace alongside up to 80 flats, 25 per cent of which were reserved for affordable housing.

The proposal was rejected by Aberdeen City Council’s planning committee in September but the applicants decided to launch an appeal to the Scottish Government which has now also been turned down.

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.”