Shafiq Mahmood, of Arain Property, will convert The Breece in West Street into 20 flats which, he says, could be used for students or professionals.
The building hit the headlines in 2014 when Scarborough Council succeeded in getting magistrates to issue a closure order when it was a House of Multiple Occupancy (HMO).
At the time the council told the court that there had been “a wide range of antisocial behaviour at The Breece over a nine-month period, including criminal damage, theft, drug use, domestic violence, serious violence, burglary and an allegation of rape”.
A number of complaints from local residents had led to the council stepping in to shut it down.
Now, Mr Mahmood wants to give the building a new lease of life and Scarborough Council’s planning committee today approved the plans.
Cllr Phil Trumper said the scheme would stop the building going to ruin.
He said: “What other use could you find for the building apart from turning it into flats?
“It’s just going to fall into disrepair and become derelict but now it is providing much-needed accommodation.”
The plans were unanimously approved.
Five members of the public had objected to the scheme, with concerns ranging from where people will park to fears that the building could again be used as an HMO if residents for the flats cannot be found.