Plans to build 30 fully affordable homes on the Central Car Park in New Quay, Ceredigion, have been refused by councillors despite planning officers recommending approval.
The £7.5 million proposal by housing association Barcud would have redeveloped the pay-and-display car park on Towyn Road into a mixed-size affordable housing development. The scheme was expected to add around 98 permanent residents to the seaside town.
What the proposal involved
The development would have included a range of one, two and three bedroom homes. Although the current site contains 209 parking spaces, the plans proposed retaining 91 public parking spaces secured permanently as part of the development.
Barcud also stated it currently operates the car park as a commercial enterprise and could close it at any time.
Planning officers argued there was a clear local housing need and that a local lettings policy would prioritise residents with a connection to the area. They also suggested that increasing the year-round population could help support local services that have recently closed.
Strong local opposition
Opposition to the scheme was significant. New Quay Town Council, local businesses and the New Quay Traders Association argued that the car park is essential to the town’s economy, which depends heavily on tourism.
Campaigners warned that reducing parking capacity would discourage visitors and damage local trade, potentially leading to job losses. A public petition opposing the development gathered roughly 2,500 signatures.
Objectors also questioned whether the housing types reflected genuine local need and raised concerns about traffic and congestion.
Economic concerns
Several councillors focused on the economic impact rather than the principle of social housing itself. They pointed to recent closures of local services and warned the loss of parking could worsen the situation in a seasonal tourist town.
While planning officers acknowledged some impact from reduced parking, they argued additional permanent residents could offset this by supporting shops and services year round.
Council officers also rejected claims that the homes would mainly go to people from outside the area, noting a local lettings policy would prioritise applicants with local connections.
The planning decision
After being deferred for further consideration and site visits, the application went to the development management committee where members voted eight to five to refuse permission.
Councillors stated they were not opposed to affordable housing in principle. Instead, the refusal centred on the loss of parking in a tourism dependent town, potential economic harm to local businesses, and design and highways concerns.
What happens next
Barcud has said it will review the council’s formal reasons for refusal before deciding its next steps, which could include an appeal.
The decision leaves unresolved a wider issue facing many coastal communities: balancing the need for affordable housing for local residents with the economic dependence on tourism infrastructure such as parking.
