Croydon Council has refused plans for a 498-bed co-living scheme at City Link House.
The plans from the former owner of Selfridges, Wittington Investments, would have seen a £90m scheme of up to 28 storeys.
Wittington teamed up with operator Fifth State to lodge plans last year.
However, councillors at Croydon’s planning committee on 27 January opted to ignore officer recommendations and reject the proposals, citing concerns over height and lack of affordable housing.
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