A £5m scheme to transform part of a run-down area in Winchester's Jewry Street has moved nearer.

Developer and owner of the site, Mohamed Bakhaty, wants to see a new restaurant, offices and flats on the former home of an antiques centre, flower kiosk and barber shop.

The Huw Thomas-designed proposals for the new building won approval from the city's planners in January last year. Construction had been expected in the spring, but the project ran into difficulties after Hampshire County Council submitted its ideas to extend the nearby public library.

There were problems with access and other conflicts created through the two plans, explained Mr Bakhaty, who has lived in Winchester for over 30 years.

One problem, he said, was that the county council wanted to place a toilet outside the proposed site of the new restaurant but after what the developer termed "friendly talks", agreed to move it inside the new library building.

Meanwhile, Mr Bakhaty has submitted a new application, received by the city council this month, which includes less office space and more homes.

The latest application increases the number of flats from six to 10, to comprise two three-bedroom apartments, seven two-bedroom flats and one one-bedroom.

"Demand for offices is not as high as for residential," said Mr Bakhaty, explaining the changes to plans for the 18,000 sq ft site. "There is no change to the building physically."

If approved by the planners, it is hoped that the development, which Mr Bakhaty says will cost £5m, can be started in May, to coincide with the library work.

Mr Bakhaty promised "a landmark building", in a part of town he says has looked unsightly for years. He didn't know what type of restaurant would be on the site, but said it would be something "different" for Winchester and not a pizzeria.

Architect, Huw Thomas, said: "This part of town is very run-down, but with the new library extension it should really start to sing."