A four bedroom chalet bungalow in Clacton Town Centre cannot be turned into six flats.
The property in Old Road has previously been used as a single household for people with mental health difficulties.
Plans were submitted by Robert Clarkson for the building to be converted into three self-contained studio flats. The scheme also included an extension to create three one bedroom studio flats.
However, the application has been rejected by Tendring District Council (TDC) due to the excessive intensification of the use the site and the high density of the development.
It was also felt that the scheme would harm the privacy of neighbours and there was a lack of amenity space provided.