NHS Tayside had a planning in principle application to convert the land at Royal Liff Hospital into residential use and build up to 58 homes refused by Dundee City Council last February.

The site has remained unused since the closure of the hospital more than two decades ago and falls within the wider Western Gateway development area.

The proposal, submitted by EMA, had earlier been recommended for approval by council planners but the lack of affordable housing included in the plans sparked concern among councillors on the planning committee, who subsequently refused the application by 15 votes to seven.

Fifteen letters of objection were also submitted to the local authority by members of the public.

NHS Tayside then submitted an appeal to the Scottish Government’s Planning and Environment Appeals Division (DPEA) bidding to overturn the council’s rejection.

In a supporting statement, the health board argued the development was “well-designed and high quality” and would contribute towards the “delivery of much needed private housing”.

The statement also outlined its belief that “no technical evidence or expert opinion” had been provided to support councillor concerns over the lack of affordable housing.

The appeal was handled by reporter Ailie Callan, who determined that the proposal is in compliance with Dundee City Council’s local development plan.

The ruling said there were no policies that would justify the refusal of planning permission and the appeal was upheld.

However, it is stipulated that any developer must pay a financial contribution towards primary education provision and the upgrades of the Swallow Roundabout.

NHS Tayside also submitted a claim for an award of expenses during the appeal process.

Documents show the health board believed the council acted “unreasonably” in refusing the planning application, based on the reasons given.

And while the reporter determined Dundee City Council failed to “clearly” support its reason to refuse the application, the “unreasonable” behaviour did not result in the appellant incurring unnecessary expense.

NHS Tayside says it plans to progress with the sale of the site.