There’s a growing move by Cornwall councillors, of all political leanings, to end a “grey area” in planning policy which is allowing aparthotels to sell flats as second homes and holiday lets, which is impacting on the lack of available accommodation in Cornwall during the housing crisis.

There was anger at a planning committee meeting this week when Cornwall Council’s leader, the Mayor of St Ives and one of the town’s leading politicians all slammed the Treloyhan Manor, an aparthotel in the town, for selling apartments for up to £1.5m even though it’s legally classed as a hotel.

Cornwall’s coastal areas are seeing a growing trend to convert former hotels and other buildings into aparthotels, a serviced apartment complex that uses a hotel-style booking system.

They are classed as C1 properties, akin to hotels, B&Bs and guest houses, but many councillors believe they should now be classed as residential C3 if they are selling off flats and apartments.

Cornwall Council’s Conservative leader Linda Taylor said: “It’s most definitely a growing problem and that’s why I’m going to engage with planners as we need to have a policy because it’s a bit of a grey area.

“With the Treloyhan it was an application for a hotel, but over a period of time they’ve been allowed to treat it like an aparthotel. That for me is a Class 3, so there should be a change of use.

“I was really unhappy – it’s by stealth that developers are creeping around the requirements because there is a muddle in the definition in planning.

“They’re missing out the affordable housing contribution. They’re also, in St Ives in particular, sidestepping the requirement for primary residence only.”

Councillors on the west area planning committee first let their feelings be known on the issue last year when they unanimously refused a proposal to turn a block of 37 residential flats for over-55s on Boskerris Road, Carbis Bay, into an aparthotel.

Original planning consent was given on the proviso that the apartments were sold as primary homes for people aged over 55 in line with the special H2 policy in the St Ives Area Neighbourhood Development Plan, which states new-build properties should only be for principal residences to curb the influx of second homes in the area.

Not one of the apartments, which were for sale for up to £3m and cost almost £33m to build, were sold which led to the application to turn the building into an aparthotel.

Andrew Mitchell, Independent councillor for St Ives West and Towednack, said at the time: “This should be a brand new application for an aparthotel and therefore there should be an off-site contribution of over £1.2m.

“I can’t believe that Cornwall Council is allowing the developer to get away with not making that contribution to affordable housing in an area which is desperately crying out for local accommodation.”

Cllr Taylor said this week: “The Boskerris, which is part of the Carbis Bay Estate, is what started it all off because that also had a condition on it for over-55s.

“Once they got planning they started marketing outside Cornwall for ridiculous prices and they were not making any mention of the fact that there was an over-55s condition.

“It’s just blatant and I’m certainly not happy.”

The aparthotel dilemma raised its head again this week when the same committee was asked to make a decision on a “modest extension” on the 100-year-old Treloyhan Manor, which is currently being refurbished as an aparthotel.

St Ives mayor Johnnie Wells, speaking on behalf of the town council, said planning rules have been “eroded by the grey areas” surrounding aparthotels, which are being “exploited to allow developments which contradict our adopted local neighbourhood plan”.

“This application clearly demonstrates that Treloyhan is now a block of high-value individual apartments.

“Bit by bit this development is being consented as fully self-contained and privately owned apartments,” he added. Cllr Wells said there are currently 18 apartments being offered on 999-year leases for values of up to £1.5m.

“This shows a clear breach of the very basis of the original planning conditions. Why? Because these are essentially being sold freehold with no economic or functional link to the hotel. The sales value and description are clear evidence that occupation is not restricted and they are available to be occupied all year round as permanent residences, second homes and the seller even invited purchasers to sub-let them as holiday flats.”

Cllr Mitchell was so angered by the application that he accused the developer of “stealing” affordable homes from the St Ives community, adding that Cornwall Council’s planning department was “complicit”. He said if the issue continued he would have to refer the planning authority to the ombudsman.

Cllr Taylor believes her colleague’s righteous anger may have got the better of him.

“When you’re a Cornwall councillor you do have to be aware of your arena and what you say. Those words were spoken with passion because of his concern.

“Obviously taking the local authority to a judicial review would take considerable sums of money,” she said. “I believe the decisions, the guidance and collaboration shown by planning officers on Monday showed quite clearly that we will be sitting down and we will be discussing the policy going forward.

“So I think he can save his pennies on a judicial review.”

The council leader will meet with the planning department next week. “I think with the two decisions that have come from west planning now, that’s got to put a marker in the sand for other developers to absolutely be aware that we’re on it, we don’t like it and we need to have it addressed and have a very clear policy,” she added.

A spokesperson for Cornwall Council said: “The local planning authority is engaging with members to explore the issue.”