Developers have abandoned plans to replace a former electronics superstore in Aberdeen with a block of flats.
Last year, Raglan Development announced proposals to demolish the abandoned Currys PC World shop on Hutcheon Street to make way for a block of student accommodation, flats and serviced apartments comprising 650 beds.
The firm filed an application notice with Aberdeen City Council and a public exhibition was held last June, but the plans did not proceed any further.
A Raglan spokesman confirmed that “changes in the market” mean the scheme will not go forward.
He said: “The circumstances of the market have changed and we have decided not to progress with the application at present.”
George Street Community Council welcomed the about-turn, saying the site could provide space for badly needed affordable housing in the area.
Chairwoman Michelle Macleod said: “People want to see more affordable housing, as that is very few and far between in this part of the city.”