Persimmon Homes had applied for planning approval in principle to build 90 affordable homes on the area which was formerly occupied by the Stewarts Cream of the Barley whisky bottling plant.

The brownfield site sits directly across from Kingsway East fire station and is next to a site currently the subject of plans for a new Costa coffee shop and Lidl supermarket.

Ian Goldrick, representing the housebuilder, told councillors the demand for affordable housing in the area was high, while supply was relatively low.

He said the firm had received more than 200 inquiries, the vast majority from people who still wanted to live in the immediate area.

Convener Will Dawson moved for the application to be refused, following advice from council officers that it was contrary to Dundee City Council’s development plan.

He said the space was being earmarked for economic and industrial use, due to its proximity to the city’s port, deeming the land unsuitable for housing.

Councillor Lynne Short tabled an amendment seeking to approve the bid, which was seconded by Councillor Kevin Cordell.

The amendment was defeated by 17 votes to six.

In 2012, plans for almost 60 new homes were lodged as part of a social housing project.

However, the proposals fell through amid concerns over traffic congestion and parking.