Developed in partnership with Fusion Students and Orion Capital Managers, Ediston Real Estate’s New Town Quarter sought to deliver 315 homes and 591 student flats on the land in Dundas Street, which had been occupied by now-demolished Royal Bank of Scotland offices.

Following on from the previously consented scheme in 2021, the proposals had been recommended for approval by the City of Edinburgh Council’s head of planning, David Givan, ahead of being considered at the Development Management Sub Committee.

The application was rejected on a vote by councillors by seven to four, amid objections over the density of student homes.

Ross McNulty, the development director at Ediston Real Estate, which is managing the development process, said: “We’re obviously disappointed with the outcome of the committee meeting.

“We’ll take some time to reflect on the outcome and the debate at committee about the proposals before we decide how to respond.”

He added: “We can’t help but observe that the committee missed an opportunity that would have delivered many new homes quickly that would help tackle the housing emergency.”

Last week, Wheatley Group signed up to own and manage the 108 affordable homes to be delivered as part of the New Town Quarter development.