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A developer has won planning permission to build up to 29 homes on a “derelict” former social club site in Caerphilly.

Proposals show a three-storey block of flats could replace the former Aneurin Labour Club, in Penyrheol, which was demolished following a fire.

The applicant, the Swansea-based Castell Group, has indicated the new homes will all be classed as affordable, Caerphilly County Borough Council’s planning committee heard on Wednesday July 9.

Members of the committee were supportive of the plans and recognised the local demand for housing, as well as the current condition of the site, off Heol Aneurin.

Cllr Greg Ead, who also represents the Penyrheol ward, said the area is “obviously crying out” for more homes, and described the proposed site as “completely derelict at the moment”.

Cllr James Fussell added the proposed new homes would be “beneficial”.

If built, the development will comprise 23 one-bedroom flats and six two-bedroom units.

There will also be a communal lounge on the ground floor, and the scheme will contain 30 parking spaces, a bin area, and bike storage.

Planning officer Helen Winsall explained the site was affected by national rules on protecting community spaces.

Typically, the loss of such buildings should only be allowed if they are considered surplus to requirements, or if a developer can provide a comparable replacement.

The applicant provided a market demand assessment which concluded “future commercial use for the site is not sustainable under current market conditions”.

Council planners judged the information provided was not “sufficient to determine if the site is truly surplus to requirements” for community use.

However, they also accepted it would be “difficult” to attract that use, and noted there are other sites within walking distance.

Ms Winsall told the committee it was “very unlikely” the site would be “redeveloped as a community facility”.

An unrelated application, to convert the former club site into a bus and storage depot, was refused planning permission earlier this year.

Committee members voted unanimously in favour of granting planning permission for the new homes, subject to conditions and an agreement that at least 40% of the development is provided as affordable homes.

The council, in a report, said that “although the development is proposed as a 100% affordable development, such provision cannot be guaranteed” without an agreement in place.