The change of use will provide four one-bedroomed residential units, three retail units and one restaurant.
The site is within a conservation area and comprises a grade II listed building with a series of rear extensions and outbuildings. A timber-framed town house incorporates the butchers shop at ground level.
Herefordshire Council's highways department made no objection.
Herefordshire Council's conservation manager said the proposal will benefit and regenerate an interesting historical element in the centre of Ledbury and give the Victorian buildings a new use.
Herefordshire Council's archaeological adviser commented that the site is of great sensitivity but felt any possible damage could be mitigated.
Ledbury Town Council recommended approval.
Three letters of objection were received concerned at fumes and odours from the restaurant and that shops would bring extra people into the area.