Fife Council had previously ruled that a 90-bed hotel at Abbey Park must be fully built and have an operator in place before construction could begin on 100 student rooms adjacent to it. The aim was to ensure the hotel element of the project would not be abandoned.

However, Robertson Properties challenged the condition, stating they had been unable to secure a hotel investor despite extensive efforts—rendering the entire scheme financially unworkable.

The Scottish Government has now upheld the appeal, with reporter Keith Bray describing the council’s condition as “unreasonable” and lacking clear policy support. He said there was no justification for tying the student accommodation to the hotel’s delivery.

Originally submitted in 2017, the hotel and student housing plans were scheduled for completion by 2023 and were approved despite opposition from local residents concerned about the impact on the quiet conservation area.

Robertson argued that allowing the student rooms to proceed independently could help “unlock” the delivery of the wider development.

Although Fife Council’s northeast planning committee refused to remove the condition earlier this year, the appeal emphasised that the current demand for student housing in St Andrews now outweighs the need for a new hotel.

Mr Bray concluded: “It places an unreasonable burden on the developer with no apparent policy backing.”