Developers hoping to convert Otley’s old hospital into housing have had to go back to the drawing board.

Town councillors last month branded the lack of any affordable housing in the plans for the former Wharfedale General Hospital site a “deal breaker”.

The developer responded by offering, to planning officers at Leeds City Council, to make just two of the properties in the 60-home scheme affordable.

That offer has been rejected and the application has, for now, been withdrawn.

Councillor Colin Campbell (Lib Dem, Otley & Yeadon) said: “We would argue that Otley is a high value area with developers fighting to get in, so we should not compromise on principles.”

Town Councillor Carl Morris (Lab, Manor), reacting to the two affordable homes offer, added: “Everyone really wants to see the hospital development go ahead, but the developers need to come back with a serious offer on the table about affordable housing.

“I recognise that the high cost of the heritage conversion means they can’t get close to the 33 per cent of units normally expected. But there has to be more emphasis on affordability - we need homes that young families can afford.”