The Housing Supervisory Board received an update on the progress of Cornovii Developments Limited (CDL), noting a revised delivery profile and discussing the financial implications of market volatility. The Board also deferred a decision on the CDL Business Plan to allow for further due diligence in light of ongoing economic changes.

Cornovii Developments Limited - Quarter Three Monitoring Report

The Board noted the progress of Cornovii Developments Limited (CDL) as of December 2025, as detailed in the Quarter Three Monitoring Report¹. The report indicated that CDL is on track to deliver 582 homes over its 10-year business plan, with a revised forecast of 532 homes due to updated viability assessments and scheme changes. Of the homes completed and currently on site, 21% are forecast to be affordable housing, with completed sites achieving 34% affordable housing. CDL has also entered the Private Rented Sector (PRS) market, with 41 PRS properties and 9 Rent to Own homes tenanted, generating £0.440m in rental income and £0.922m in capital growth.

Key development sites, including London Road (Charles View), Sue West Welshpool Road, Shrewsbury, and Shrewsbury Road, Oswestry, are progressing with planning, procurement, and funding activities underway. The sale of 27 Section 106 affordable homes to Shropshire Council for £3.853m was highlighted as a significant transaction.

Councillor Jon Tandy raised concerns about the Sue West Welshpool Road development, questioning the revised timeline to Spring/Summer 2026 and the reliance on external consultants. Ben, who is leading on the project, explained that the delay was due to the need for specific traffic surveys during term time and ongoing work on Welshpool Road. He confirmed that a planning programme is in place with a view to resubmission for a July committee.

Councillor Harry Hancock-Davies sought clarification on the reduction in the number of homes to be built from the original target of around 700 to approximately 582, and how this impacted the loan from Shropshire Council. Harpreet, responding to the question, explained that increased construction costs, housing market volatility, and the complexity of unlocking difficult sites had influenced the revised numbers. She stated that the loan amount remained around £69 million, comprising £30 million for PRS activity and £39 million for market sale development. Harpreet also noted a shift in demand towards affordable and PRS properties, with a disinvestment in the wider private rented sector.

Councillor Carl Rowley inquired about the possibility of Star Housing² absorbing more affordable units, given Shropshire Council's housing waiting list. Harpreet explained that while Star Housing manages the Housing Revenue Account (HRA) in partnership with Shropshire Council, any increase in home building would require Shropshire Council's approval. She mentioned a forthcoming paper in May that would outline a route for Star Housing to deliver more homes, potentially using CDL as a vehicle. Harpreet also highlighted the importance of Star Housing looking at Section 106 opportunities where developers sell affordable housing.

Regarding the aesthetic of the homes, Councillor Rowley questioned if the design of some properties, citing examples in Ifton, Ethan, and St Martins, was contributing to difficulties in selling them. Harpreet acknowledged that while feedback on design had been generally positive, there was always room for improvement and a need to respond to market demand for more traditional designs. She also pointed out the focus on new technology and thermal efficiency in CDL's properties, which, while beneficial for energy bills, might not always be the primary consideration for buyers.

Councillor Greg Ebbs raised concerns about meeting housing forecasts for the next financial year due to ongoing nationwide financial turbulence, rising builder costs, and labour costs. Harpreet confirmed that this was a real risk, citing the withdrawal of mortgage products, increased energy prices, and the impact of global events on construction costs. She stated that CDL's approach would be to consolidate on existing sites, secure planning permission for other sites, and then carefully consider the right delivery route. She also addressed the question of whether affordable home prices would increase with inflation, stating that while build costs would likely rise, rents were set by a 10-year formula and would not increase beyond the CPI plus one.

Councillor Jon Tandy also raised questions about the Shuseby Road, Oswestry site, specifically the potential impact of a retailer purchasing part of the site on the viability of an older persons' scheme on the remaining land. Beverley Waite responded that the retail unit would actually make the site more viable, as it would allow CDL to focus on the less contaminated part of the site for residential development. She explained that the regulations for commercial and residential development differ, and the proposed older persons' scheme would be complementary to existing developments and provide amenities for residents. This new scheme would be entirely affordable, potentially reducing the need for support from the combined authority.

Beverley Waite also clarified that the £0.440m rental income from the PRS and Rent to Own properties sits with Cornovii and is used to pay off the loan back to the council, covering interest payments. A valuation of the PRS stock was underway and would be reported back to the committee.

Cornovii Developments Limited - Business Plan

A verbal update was provided on the Cornovii Developments Limited Business Plan. The Service Director - Commissioning explained that the plan would not be presented for formal agreement at this meeting due to ongoing internal changes, including new Section 151 and deputy Section 151 officers, and the need for further due diligence. The current economic climate, with daily changes in price escalations and market conditions, necessitates a cautious approach. A separate session will be scheduled to discuss the business plan in more detail, focusing on the as-is position, key milestones, and decision-making parameters for the next 12 months. The revised business plan will then be presented at the next public meeting for formal agreement.