Plans to convert Bank Cottage, which is near the River Severn, from retail to residential use have been approved by Powys County Council planners
The decision comes just over three months after a similar application to convert the Grade II listed building had been refused.
The cottage, which was once an antiques store, is an end of terrace property fronting onto Gas Street that serves as a shop and is within the Newtown conservation area.
The new planning application included a flood consequences assessment which looked at risks from flooding. It said the building is in part of Newtown that has flood defences and so the risk of flooding is low.
Planning officer Luke Woosnam said: “A previous application was refused based on flooding, as insufficient information had been submitted to allow for the appropriate consideration of potential consequences of a flooding event.
“Natural Resources Wales has been consulted [and] does not have any objection to the proposal."
A listed building consent application to make internal alteration had been approved back in April 2021.
Mr Woosnam said: “The property was previously a dwelling house, and in design and appearance still resembles this.
“There is no obvious shop-frontage or design feature or other aspect of the building or setting that would appear to be negatively impacted by the proposed change of use.”
It is believed that the cottage was first built in the 17th century and is attached to the north-eastern end of a pair of other brick-nogged timber-framed cottages known as Bank Place.