Plans to turn a “financially unviable” mid-Ceredigion holiday complex into housing, with a third of them affordable, are recommended for approval, but a ‘Welsh born’ clause on all properties is not expected to be backed.

Permission has been sought for a change use of Parc Teifi Chalets, Bridge Street, Pontrhydfendigaid to 10 semi-detached houses and five one-bed apartments, the latter being affordable units.

The plan is recommended for approval before the 15 January meeting of Ceredigion County Council’s development management committee.

A supporting statement says the overall visual design of the existing holiday complex, sited near Bont’s Red Lion pub, will remain the same, other than fencing and individual parking spaces.

The statement says that “running Parc Teifi as a sole holiday complex is not financially viable”, with only “one instance where all 10 holiday units were full”.

“The site and village lacks facilities for large accommodation such as this, with lack of nighttime economy, it is usually the case that larger parties focus their search for accommodation towards the larger towns and cities or on holiday camps such as Bluestone or Centreparcs,” the statement added.

In the last three years the business has been running at an extensive loss as costs outweigh the total income, the statement says, with occupancy at its highest in 2022 out of the last three years at only 27 per cent occupancy rate.

An officer report ahead of the meeting says local community council Ystrad Flur does not object to the proposed development, but is asking for a clause within a Section 106 [planning] agreement to ensure residents are Welsh-born and key workers.

The clause was considered “inappropriate” by Ceredigion County Council planners in its recommendation.

The application is recommended for conditional approval, conditions including a S106 securing the provision of affordable housing.