The Housing Supervisory Board met to discuss the progress of Cornovii Developments Ltd (CDL), Shropshire Council's wholly owned housing company. The board received an overview presentation from Harpreet Rayet, Managing Director of CDL, and a limited update report from Jenny Daisley, Strategic Housing and Commissioning Manager. The board noted the CDL update report.

Cornovii Developments Ltd (CDL) Overview

Harpreet Rayet, Managing Director of CDL, presented an overview of the company's activities, its achievements to date, current projects, future pipeline, and financial outlook. She explained that CDL was set up for three reasons: to comply with the Localism Act, to act as a regeneration company for the council, and to intervene in the market to provide housing types not adequately supplied by the private sector.

Ms Rayet outlined the governance structure, highlighting the roles of Shropshire Council, the Housing Supervisory Board, the CDL board, and the CDL team. She noted that the Housing Supervisory Board is responsible for approving CDL's annual business plan, appointing or removing CDL board members, approving lettings policies, and approving transactions over £1 million not already identified in the business plan.

Councillor Liz, questioned the lack of a permanent chair for the CDL board, particularly given the financial decisions the board oversees. Ms Rayet responded that the council is keen to appoint a new chair during the summer. Councillor Liz also asked about the qualifications of council officers nominated to the CDL board. Ms Rayet explained that nominees have historically come from the council and been approved by the Housing Supervisory Board, and that officers are nominated based on their relevant experience, such as regeneration, housing development, or IT and business transformation.

Councillor Harry Hancock-Davis asked for a copy of the CDL lettings policy, which Ms Rayet agreed to circulate.

Ms Rayet outlined CDL's mission to create sustainable communities, meet housing needs, and improve access to housing for people of all ages. She discussed exploring commercial opportunities, such as working with neighbouring landowners to develop land and share costs, and partnering with private investors and lenders to offer innovative housing solutions like a help to own product.

Councillor Liz asked whether CDL could work with Connexus to help people who have shared ownership of their houses to own their own homes. Ms Rayet said that this was not possible due to the different financial structures of the two companies.

Councillor Greg Ebbs raised the issue of building homes for life that are adaptable for older people. Ms Rayet responded that all CDL properties are built using timber frames and are designed to be easily adapted in the future, with consideration given to M42 compliance¹ and nationally defined space standards.

Councillor Gregory Epps asked about the history of the partnership between Shropshire Council and CDL. Ms Rayet explained that CDL was set up in 2019, and she joined as Managing Director in February 2020. She noted the challenges faced during the COVID-19 pandemic, inflation, and the cost of living crisis, but emphasised CDL's commitment to developing difficult sites and offering a mixed tenure approach with different types of housing solutions.

Councillor Gregory Epps also asked about the scale of CDL's developments and property portfolio. Ms Rayet reported that CDL has built 124 homes to date, with 84 homes currently under construction on the London Road site. She added that CDL has two live planning applications for 386 homes and is working on a further 220 homes for development.

Councillor Harry Hancock-Davis asked how many of the 124 homes built by CDL are currently occupied. Ms Rayet responded that all but two are occupied, and those two have been vacant for about 12 months due to transfer issues, but are expected to be occupied soon. Councillor Hancock-Davis also requested figures on CDL's operating profit for each financial year, which Ms Rayet agreed to provide.

Councillor Rosemary Dartnall, Chair of this committee suggested setting aside time for a briefing to allow for more in-depth questions and discussion.

Ms Rayet then continued her presentation, highlighting the collaboration between CDL and Star Housing, another Shropshire housing company, and the mix of tenures in CDL's completed developments (49 open market, 38 private rented, and 39 affordable). She addressed concerns about unsold open market properties, reiterating CDL's strategy of maintaining a mixed portfolio of properties, including affordable, market sale, and private rented sector housing.

Ms Rayet also provided an overview of CDL's planning position and emphasised the company's commitment to increasing the percentage of affordable housing and private rented sector housing where feasible. She noted the challenges in the sales market, with the average time to sell properties from handover to completion being around 20 weeks.

Turning to business plan and finances, Ms Rayet explained that CDL has access to two loans from the council: £39 million for development activity and £30 million for purchasing private rented sector homes. She clarified that the company is 100% debt funded, with no equity coming from the council. Ross explained how the shareholder return is calculated, noting that the largest proportion of cash returns are related to capital receipts from CDL purchasing land from the council, followed by interest payments on the loans. He added that CDL has added £10.2 million of value to its balance sheet through its PRS rental assets.

Ms Rayet concluded by outlining the key opportunities and risks for CDL, including market opportunities, a focus on housing and regeneration, complex planning processes, funding uncertainties, challenging market conditions, and inflation and interest rates. She emphasised the importance of onboarding all board members and offered to arrange meetings, site tours, and a CDL away day to discuss key areas of work.

Councillor Liz asked about CDL's operating costs, particularly in relation to staff. Ms Rayet clarified that only 4.5 members of staff work full-time on CDL projects, with the rest of the staff being part of Star Housing.

Ms Rayet also addressed concerns about the planning process, acknowledging the delays and challenges associated with new regulations and external funding. She noted that all CDL planning applications must go to planning committee, which increases scrutiny.

Cornovii Developments Limited - Update Report

Jenny Daisley, Strategic Housing and Commissioning Manager, presented a limited update report on CDL's progress against its 10-year business plan as of the end of March 2025. The report highlighted that CDL remains on track to deliver 582 homes over the planned period, with 21% forecast to be affordable housing. To date, 39 affordable homes have been completed, with 27 more and two specialist units in progress.

Ms Daisley provided updates on completed and live schemes, including Ifton Heath, Ellesmere Wharf, The Oaklands and London Road. She noted that all developments meet or exceed EPC² targets, with carbon savings achieved through the use of photo panels and overheating mitigation measures. Flood risk assessments confirm no significant risk across all developments. CDL continues to meet board-set targets for local contractor investment, employment training opportunities, and support for educational settings.

Councillor Jon Tandy asked about the two specialist accommodation units. Ms Daisley clarified that they are two bungalows on London Road commissioned for clients with learning disabilities.

The Housing Supervisory Board formally received the quarterly update.