The Stirchley Cooperative Development (SCD) in Birmingham, hailed as a national model for community-owned housing, is at serious risk of collapse due to a dispute over construction costs with housing association GreenSquareAccord (GSA). The project, founded by local residents and businesses in 2016, was intended to provide 39 affordable, landlord-free homes and commercial units, owned and managed by the community.
Dispute Over £1.16m Shortfall
Problems emerged after GSA took over construction responsibilities in 2024 following the original contractor's bankruptcy. Delays and cost increases led GSA to announce in March that it would no longer transfer ownership to the community due to a £1.16m shortfall. Prospective residents had negotiated to purchase the land from GSA upon completion.
John Holmes, an 80-year-old retired lecturer, said he is now homeless and relying on friends and family. "We were trying to make a difference and develop something for ourselves," he told the Guardian. Sean Farmelo, 34, who plans to run a bike cooperative from the site, said six people are homeless and businesses face insolvency due to GSA's mismanagement.
Impact on Local Businesses
Rachel Kershaw, co-director of Loaf bakery, said delays forced her to reduce wages for nine staff since February. "It's been exceptionally soul-destroying," she said. "The soul's been ripped out of it." The community is seeking loans through non-equity bonds to bridge the funding gap.
Political Backing for Residents
West Midlands mayor Richard Parker and local MP Al Carns have written to GSA demanding urgent action. Parker stated: "It's not acceptable for a large housing provider to walk away from its commitments because it failed to manage costs." Carns said he would continue efforts to get the project back on track.
A GSA spokesperson said: "We appreciate this is not the outcome SCD and our partners had expected but, as a not-for-profit social housing provider, it would be irresponsible to absorb the shortfall." The association claims costs rose due to interest, inflation, and construction challenges.
