Major works will be undertaken to the building housing Holt's Barclays bank branch.
The first floor of the High Street building will be extended and a second floor will be added on to create nine one bedroom flats for people to live in.
North Norfolk District Council has approved an application for the development from Mr A Graham of the firm Dentons SIPP AB Graham in Goldaming.
The new second floor will have a mansard roof.
The application for the project read: "The proposal to convert vacant commercial town centre buildings to residential is in line with current national planning policy.
"The government has, over the last few years, extended permitted development rights to allow such conversions to take place without the need for planning permission.
"The proposals will provide much needed housing within Holt town centre and will result in the improved appearance of what is currently a rather unattractive, but prominent building within the town."
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