Stroud council ‘hopeful’ after developer pulls out of ‘challenging’ canal site

Stroud District Council (SDC) is calling for “innovative ideas” after the housing developer selected to take on the “challenging” canalside Brimscombe Port project pulled out of the scheme unexpectedly last week.

Developer St Modwen Homes was selected to deliver the 150-home site on a brownfield site in partnership with SDC after a “competitive” tender process almost three years ago. 

However, St Modwen, which was recently acquired by US firm Miller Homes, pulled out of the partnership last week after its parent firm reviewed its portfolio and attached a higher risk rating to the project because of its brownfield site status.

Cllr Chloe Turner, leader of the minority Green Party-led SDC, said the local authority was “hopeful” they could find a new developer for the site if they get the go-ahead from Homes England, which has put up half the £5m of public money allocated for the project.

She told Housing Today: “Brimscombe Port is quite a challenging site in some ways. It has a history of contamination from its use as a port and subsequent industrial usage. Also, it’s right in the heart of a community.”

“We have high expectations in terms of wanting high-quality housing that’s energy efficient and built with nature. But the site also offers a lot of opportunity, and we are really interested to see what’s out there, assuming we get the go ahead from Homes England to re-procure.”

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“We’re interested in innovative ideas. We’d like there to be community involvement. If there are smaller developers who are keen to approach the project potentially as a consortium, we’d be open to that.

“We’re going back into this with our eyes wide open, and particularly looking favorably on opportunities for community-led housing, opportunities to maximize the integration with the natural environment and to have housing that is as environmentally friendly as possible.”

“As a Green-led council, we’re very much focused on delivering brownfield first.”

The scheme with St Modwen Homes had been due to reinstate the canal and port basin, provide up to 150 energy efficient homes, including affordable homes, community, commercial and social facilities, routes for walking and cycling and benefits for wildlife and biodiversity.

Turner said St Modwen Homes had appeared committed to the project until it was acquired by Miller Homes in January (a process which followed a former takeover by Blackstone in 2021), holding a public consultation in December 2024 on proposals attended by hundreds of local residents. The developer said at the time that plans would be submitted in spring or summer 2025.

The local authority contributed £2.6m to the project, while £2.7m was loaned by Homes England.

Homes England will need to give the green light for the procurement process to find a new developer to start again, but Turner says the council was “hopeful”.

She described the withdrawal of St Modwen as “incredibly frustrating” and “very upsetting”, especially when they had hoped to be submitting planning and entering the delivery phase.

Demolition work was conducted on the site two years ago in a bid to “de-risk the site” and have the “best chance of a great developer coming forward”. Local businesses including a popular indoor stakepark were forced to close. 

Turner added: “You can imagine from the community’s perspective that it is frustrating to not see any furthering of the project yet. We remain completely committed to finding a positive alternative path.”

Brimscombe Port was the UK’s largest inland port from the late 1700s but was filled in after the Second World War. The site was developed as an industrial estate from the 1960s. Some historic buildings survive, including the Salt Warehouse and the Port Mill.

According to its acounts, St Modwen posted turnover of £371m in the year to December 2022, making a pre-tax profit of £5.36m after selling 1,313 homes.

St Modwen Homes declined to comment.

A spokesperson for Homes England told Housing Today: ”We are currently reviewing the position in the context of previous funding and will continue to discuss options with Stroud District Council. We will provide a more substantial update as soon as we are able to.”