The university is set to appeal against the decision
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Plans to build student flats on the site of halls of residence have been rejected by councillors.
Sheffield Hallam University had hoped to demolish Ballard Halls to make way for 64 new apartments.
But Sheffield councillors refused planning permission for the five Ranmoor Road apartment blocks at a meeting on Tuesday.
The South Planning and Highways Board said the proposals were "wholly inappropriate" for the Ranmoor Conservation area.
Chairman Sam Wall said: "We are not prepared to accept poorly-designed schemes, and that is even more the case in Sheffield's conservation areas.
"These proposals would be very harmful to the setting of St John's Church, a grade two listed building.
"This is unacceptable over-development."
The university is to appeal against the decision.