A scheme to turn a “financially unviable” Pontrhydfendigaid holiday complex into housing has been backed by county planners.

An application before the 15 January meeting of Ceredigion County Council’s development management committee, sought permission for a change use of Parc Teifi Chalets, Bridge Street, to 10 semi-detached houses and five one-bed apartments, the latter being affordable units.

A planning statement said that running Parc Teifi as a sole holiday complex is “not financially viable.”

“During the past four years there has only been one instance where all 10 holiday units were full and that was due to a block booking by a company who attended the National Eisteddfod in Tregaron in August 2022 –a one off event in the area,” it said.

“Year-upon-year there are less bookings and higher costs involved in the running of the units.”

The statement said the current open-market value of the houses is circa £170,000, and the flats at £65,000 to £70,000, which would be discounted by some 30 per cent.

An officer report said that local community council Ystrad Flur does not object to the proposed development, but had asked for an agreement to ensure residents are Welsh-born and key workers.

Local member Cllr Ifan Davies said the applicant had met to discuss the proposal with the community council on a number of occasions, the business “no longer viable” despite Mr Hughes’ “best efforts”.

He told members that a local clause had been asked for but was not able to be done, but a “gentleman’s agreement” to favour local links had been agreed.

Members were told by officers that a blanket locals-only condition on the open market units was not currently part of Ceredigion’s planning policy, with potential implications for obtaining mortgages from such a clause.

The application was conditionally approved by planners.