Plans to build almost 200 new homes as part of a major new development in Cornish tourism hotspot Newquay have been approved.

Housebuilder Persimmon has been given the green light by Cornwall Council to construct 187 family homes on land south of the A392 road in Trevemper.

The firm said 56 of the properties would be allocated to a local housing association provider, to help address “pressing” housing requirements.

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The proposed development will consist of one, two and three storey-buildings, and properties ranging from one-bed apartments to five-bed homes.

Persimmon said it would also contribute more than £565,000 to Cornwall Council through the Community Infrastructure Levy for local improvements. Among these will be “significant” public open space, a play area, and a new three-metre wide footpath and cycle way.

Robbie Brown, technical director for Persimmon Homes Cornwall and West Devon, said: “I would like to thank Cornwall Council for their cooperation and diligence during the application process as all parties worked positively to deliver a high-quality scheme, which helps address the local housing need and provides the opportunity for home ownership to more local people.”

The approval comes after Persimmon was recently given the go-ahead to build 94 homes for another project in The Duchy. The firm said the scheme in Helston could ultimately provide around 400 new dwellings.

York-based Persimmon recently reported the number of houses it had completed during the first six months of the year had fallen by more than a third, and had lost £500m in revenues.

The slump in sales has also been seen by other major housebuilders, with Bellway and Taylor Wimpey both recently highlighting issues, such as higher mortgage rates and the removal of Help to Buy schemes, as causing uncertainty in the housing market.