Council housing firm to build more than 700 homes over ten years

Shropshire Council's Housing Supervisory Board will receive an update on the business plan for its firm Cornovii, later this week.

Under the business plan from 2022 to 2032 the firm will look to build 728 homes – an increase of 154 on the proposals in its 2021 business plan.

The homes will be spread across nine schemes in the county, and of the 728 homes there will be 138 affordable properties – under rent or shared ownership.

Shropshire Council's housing firm came after one created by Telford & Wrekin Council call Nuplace although the company's remit is different to that created by the neighbouring authority.

The Shropshire firm is specifically intended to operated as a commercial business to make money for the council, and to take on projects that other developers may deem too difficult.

Councillor Dean Carroll, Shropshire Council's cabinet member for physical infrastructure said the aim of the business is to provide low-cost homes, which are not provided by other commercial firms.

He said that affordable housing was a focus of the council's social housing organisation, Star Housing.

Councillor Carroll also said that the authority was not able to reveal how much they expect the firm to make over the business plan, due to commercial sensitivity.

The cabinet member did though say it does expect the company to return a surplus over the next ten years.

He said: “Star Housing meets the need for affordable housing in Shropshire. Cornovii Developments is established as a commercial enterprise and does not solely offer affordable homes.

“The purpose of the company is to satisfy other Shropshire Council objectives such as sustainability, low-cost home ownership and key worker housing. It is also committed to regenerating difficult sites which may not otherwise be attractive commercially.

“The 10-year business plan shows a surplus, but the detail is classed as commercially sensitive.”

The firm has completed its first project for 33 homes at the Frith in Shrewsbury, and is working on two more approved projects, with 35 homes at the site of the former Ifton Heath Primary School, and 23 houses and bungalows on a site at Ellesmere Wharf.

The report for the council outlines how the increased ambitions for the firm show its growth.

It states: "Cornovii Developments Limited (CDL) was incorporated in 2019 by Shropshire Council to meet unmet housing need across the County. Since its establishment CDL has successfully developed a pipeline of sites for delivery of homes and is currently on site with three schemes, recently completing homes at its first scheme, The Frith, where all 33 homes have now been sold or reserved.

"The 2022 Business Plan presented to the Housing Supervisory Board demonstrates the growth of the Company as it moves to a period of direct delivery, which during the Plan period will see the development of 728 new homes, 590 market sale and 138 affordable homes."

The plan will be discussed by the committee at 2pm on Thursday.