A Newport councillor has warned an increase in people improving their current homes rather than moving house could create problems for first time buyers further down the line.

Town and borough councillor Adam Stanton said Newport Town Council had seen a “noticeable increase” in applications for extensions and modifications to homes compared with applications for new domestic properties.

He said: “What we are picking up locally, as well as nationally, is that people are less inclined to be moving as can be seen by the lesser uptake of mortgages and be more inclined to be improving their current circumstances.”

Excluding commercial applications, Councillor Stanton said the town council had had two applications in May last year, one for a new home and another for the erection of a garage.

In October, the council had seen four applications, three of which were for extensions and in December, there were three applications, none for new build.

Councillor Stanton said: “You’re reducing the number of homes with fewer bedrooms and making them more expensive which will make it harder to get on the property ladder.

“It’s great for residents to be able to improve their homes and their situations, but we’re increasing the entry level to the market for new buyers.”

Patrick Beach, of Patrick Beach Mortgage and Financial Services in Newport, said: “The housing market last year was turbulent but it is picking up. I think people are tending to stay where they are and improving properties, they can’t sell so they extend the property or put double glazing in.”