Hopes of building more than 100 homes on the site of a former supermarket in Shrewsbury have been dealt a blow after a second developer pulled out of a deal to buy the land.Morris Homes was due to buy the old Tesco site at Arlington Way in a deal worth nearly £7 million.

Now the land will be marketed again by its owner. the borough council. with outline planning permission to build 101 homes.

It is the second time a developer has pulled out of a deal for the site. An £8 million agreement with David Wilson Homes collapsed last summer.

Discussing an exempt item at Monday’s full council meeting, members agreed to demolish the former supermarket and petrol station in order to clear the site, which has become a magnet for vandals.

They also believe a clear-up would make the land more attractive to buyers.

SABC assistant council manager Gareth Owens said: “We are going to demolish the buildings for security purposes so the site is safe.”

Borough housing portfolio holder Councillor Malcolm Price said he was “deeply disappointed” the developer had pulled out.

He said: “The idea was to develop it for housing with 35 per cent affordable homes.

“The deal with Morris was supposed to go through at the end of last year, it was then extended to March 31 but since then we have been notified by Morris that they don’t wish to pursue it.”

Councillor Price said the building would be demolished as well as the petrol pumps taken out. He said it may be possible for the council to secure Government funding for the work.