A decision to build homes on a busy seaside car park has been delayed following stiff opposition from local businesses.

More than 40 traders in New Quay have signed a letter raising concerns that the loss of more than 200 car parking spaces will have a severe impact on the town’s economy.

Housing association Barcud is seeking permission for scheme to build 30 homes at Central Car Park, Towyn Road, which it owns, and the plans have been recommended for approval by planning officers.

Businesses in the town say the development will see the number of car parking spaces reduced from 315 to just 91, a 71 per cent reduction.

During a meeting on Wednesday, councillors decided to defer the application for more information following a letter from traders raising these concerns and their case being put forward by local councillor, Matthew Vaux.

The New Quay Traders Association has wrote to planners, saying: “The negative effects of losing 224 public parking spaces will be profound for both locals and traders.

“At present, the car park accommodates not only tourists in peak season but also residents and local employees who rely on the car park, as well as parents and their offspring attending the local primary school where there is no parking provision.

“More ominously, it raises economic concerns as fewer convenient parking spots means fewer visitors stopping in the town.

“The New Quay Traders Association has gathered testimony from numerous business owners that lack of parking already strains trade on busy days, and that was before any spaces were removed. If the majority of the car park is built over, many visitors will simply find nowhere to park and will turn away to other destinations.

“In other words, New Quay risks gaining a reputation as an inconvenient place to visit, a reputational damage that could be hard to reverse.

“This would be a tragic outcome for a town that has worked hard to build its tourism profile.”

During the meeting, Cllr Carl Worrall warned that Barcud owned the land and could come in and ‘lock the gates’ to the car park.

The proposal includes 10 one-bed flats, six two-bed flats, 10 two-bed semi-detached houses and four three-bed semis.

New Quay Town Council has also 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.

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.

Barcud said: “As the application is still being considered by Ceredigion County Council, we believe it would not be appropriate to comment further until the final decision has been made.”