The redevelopment of the former Wharfedale Hospital in Otley may finally go ahead after a developer revived plans to convert the building into housing.

But the “high risk” scheme will not include any affordable housing, as the developers say the conversion costs are too high to offer low-cost properties.

The Homes and Communities Agency bought the Newell Carr Road site from the NHS when it moved to the adjoining building in 2004. In 2011, they got planning permission to turn it into an estate of 72 homes, some of which would be converted from the original hospital.

But they were unable to find a developer willing to take on the conversion of the Grade II-listed building.

PJ Livesey Living Space have now taken on the site, and applied for permission for an amended plan.

Their application submitted to Leeds City Council, would see 60 homes and the retention of a number of buildings that would have been demolished in the previous scheme, including the mortuary and boiler house chimney.

The hospital building would be converted into 27 town houses and eight apartments, and another 25 houses would be built on the site, which includes 124 parking spaces.

The scheme involves the demolition of some buildings, but the developers say converting the hospital is the only way to avoid losing the listed building.

The plans have received a mixed response from local politicians, who are happy the site is finally being developed, but disappointed the scheme doesn’t include any low-cost housing.

Coun John Eveleigh, from Otley Town Council, said: “This is one of the brownfield sites within the town that the Town Council are keen to see developed and we welcome the application.

“While their plans demonstrate a sympathetic approach to the old buildings, and retention of the chimney and mature trees, there is real disappointment that their proposals did not contain plans for affordable housing – something the town is crying out for.”

People have until the end of August to comment on the application.