Plans for a mixed-use development on a vacant site in Edinburgh’s Old Town have been revised to include new affordable homes instead of an arts quarter.

The proposals for King’s Stables Road in the Grassmarket area had originally included a mix of 59 residential units, a 92-bed boutique hotel and an arts facility alongside a 167-room student accommodation block and a variety of commercial units activating the ground floor of the development.

The plans, which were given the green light by the City of Edinburgh Council last year, also include improved public realm integrating the existing courtyard with new routes and courtyards throughout the development, including the enhancement to the setting of King’s Bridge.

However, blueprints for the final plot of land in need of planning permission show a reduction in building height and now include 11 affordable flats. The arts quarter originally earmarked for the residential area has been moved to form part of the hotel development after being rejected due to the impact on neighbouring properties.

Following last year’s planning approval for the wider King’s Stables Road build, developers Campus Development Management and Peveril Securities submitted revised proposals to address the need for much sought-after affordable housing on the city centre site.

A Campus DM spokesman told the Edinburgh Evening News: “On the basis that the developer only requires to provide eight affordable units, the increase in the provision and size of the affordable homes comes following the planning committee’s express desire for the delivery and prioritisation of onsite affordable.

“Subsequent dialogue with the planning department defined that three storeys was the preferred height of any new building on the Lady Wynd site.

“Adjacent resident amenity has been protected while new occupants will enjoy private rain gardens, enclosed terraces and overlooking views into a public courtyard.”

If the plans are successful, the flats will have their own enclosed bike and bin storage and will each utilise renewable forms of heating to help households reduce energy bills.

A Campus DM spokesman said: “As part of the planning approval for the wider development, the proposals at Lady Wynd including an arts facility and residential flats were not given consent due to the impact on neighbouring properties and the relationship the Old Town’s urban context.

“The arts facility has been relocated to form part of the hotel development approved for the site, with an improved frontage to King’s Stables Road.”

The space, originally designed to be on the ground floor of the Lady Wynd site, will now be in a hotel.