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Jo and Benji Howell had applied for planning permission in February to redevelop the former Swan Inn on Market Place, Bungay.
Their proposal included converting part of the Grade-II listed 17th-century building into a gallery, alongside creating a residential space set over three floors.
However, the pair have now decided not to proceed with the scheme and have withdrawn their application from East Suffolk Council.
The building, which has stood empty since at least 2018, was previously known as The Swan Inn, The White Swan, and Swanson’s.
Despite interest in reusing the site, recent proposals have failed to reach completion.
Planning documents outlined a vision for a gallery at the front of the property, with a new single-storey studio and storage space to be built at the rear, on the footprint of former outbuildings.
A modern rear toilet block would also have been demolished as part of the plans and replaced with a new extension designed in a contemporary style while respecting the building’s historic character.
The application argued that the gallery would “provide a viable business premises, which is larger in size than other thriving galleries in Halesworth and Southwold,” while also providing an on-site residence.
Pre-application advice from the district council had indicated support in principal for a change of use provided the development delivered “a sustainable use for the building,” and preserved its historic features.
A document submitted with the application stated the internal alterations would reinforce the building’s “historic character” and the added elements would “enhance the listed building, attaching to it in a streamlined and reversible fashion”.
The withdrawal follows an earlier approved scheme for a microbrewery in 2020, which was never implemented, leaving the site vacant for several years.
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