A final decision on a housing association scheme to build 30 homes on a car park in New Quay is set to be made as “serious concerns” continue over the plan’s impact on tourism.

Housing association Barcud is seeking permission from Ceredigion County Council for scheme at Central Car Park, Towyn Road.

The application was recommended for approval at the 12 February meeting of the council’s development management committee.

The site currently operates as a 315 space pay and display car park.

Committee members put the application on hold so councillors can visit the site ahead of a final decision.

The scheme will come back before committee members on 12 March where it is recommended to be approved subject to conditions.

The proposal includes 10 one-bed flats, six two-bed flats, 10 two-bed semi-detached houses and four three-bed semis, but has faced a number of objections from local residents and businesses.

New Quay Town Council has objected to the proposals, raising concerns including the loss of parking spaces and its impact on the tourism industry, a lack of public transport in the town to cater for additional residents, and also questioned the demand for one-bed units in the town.

The scheme saw 29 objections raising issues including the impact of the development on tourism and the local economy through the loss of parking provision, questions about who would reside in the units, social housing not needed and inappropriate for the town, and the impact on local services.

In a letter to members, a group of New Quay businesses said that while they “recognise a severe need for open market and affordable housing opportunities within the village”, they had “serious concerns over the impact of housing in this particular location and the loss of significant parking opportunities.”

“At present there are a total of 315 parking spaces on this site.

“The proposals as they stand today show a 71 per cent reduction in total parking spaces to 91 spaces.

“We recognise that Barcud have responded to concerns raised during the public meeting over loss of parking by adding some 20 additional spaces to the scheme, but unfortunately it remains insufficient.

“By losing 71 per cent of spaces from this site, it means we, as local businesses will feel the loss of these visitors within the local economy.”

The businesses said they object to the proposals “on the basis of negative economic impact on New Quay and surrounding communities.”

“A reduction in business income due to reduced parking will inevitably lead to cutbacks, including fewer working hours for employees and, in some cases, job losses,” they said.

In a report for planners, the county’s Senior Housing Officer said the greatest demand for housing in Ceredigion is for one-bed properties, with 245 in the Aberaeron ‘region,’ and “over 1,900 in the county,” with the intention to apply a local lettings policy, which prioritises the applicants from the immediate area.

A previous application at the site, for 39 dwellings, was refused in 2020.