A developer has been given the green light to convert a large town centre office building into flats.

Prior approval has been granted to change Exchange House, situated on Watford ring road, into residential use.

The proposal is to convert the five-storey building into 97 flats including 18 studio flats, 49 one-beds, and 30 two-beds.

It comes after a much bigger plan to demolish Exchange House and build a 16 storey tower of 261 flats was rejected by Watford Borough Council in July.

The council's planning committee unanimously turned down that scheme citing concerns about its size and design even though the council officer had recommended the plans be approved.

Related: Why Exchange House development in Watford was turned down

Watford Observer: This scheme to demolish Exchange House and build flats up to 16 storeys in its place was refused in July 2021. Credit: Exchange Road LtdThis scheme to demolish Exchange House and build flats up to 16 storeys in its place was refused in July 2021. Credit: Exchange Road Ltd

Applicants Exchange Road Ltd returned later that month with an entirely different proposal for the building, which was constructed in 1964, which would see it retained.

Under permitted development rights, the applicants needed to secure prior approval from the council rather than full planning permission to turn locally listed Exchange House from offices to homes.

A report published on October 28 has confirmed the prior approval has been granted by the council.

The officer said the 97 flats would have "adequate" natural light and meet national standards for size, adding the development would not have any "significant impact" on transport or roads.

There are currently 160 parking spaces at Exchange House but the parking will be reduced to 97 under this scheme.

The council report says prospective residents would not be allowed to park on surrounding streets.

Watford Observer: Exchange House as seen from Upton Road. Credit: Google MapsExchange House as seen from Upton Road. Credit: Google Maps

This is the second time permission has been granted to convert Exchange House into homes.

Permission was won back in 2017 by a different applicant to turn the building into 126 flats but the plans never materialised.

New proposals came forward by new applicants to demolish Exchange House. Initial designs saw the new tower rising as high as 21 storeys - but Exchange Road Ltd eventually settled on a C-shaped building of 16 floors.

Watford Observer: A CGI view of the refused Exchange House scheme from Watford ring road. Credit: Exchange Road LtdA CGI view of the refused Exchange House scheme from Watford ring road. Credit: Exchange Road Ltd

But the plans were refused by the council during the summer prompting the latest conversion scheme to come forward.