New town plan stalled by economic challenges

How the Langarth Garden Village could look when complete

Cornwall Council’s ambitious project to create a new town near Truro has hit significant economic hurdles, councillors have been told.

The Langarth Garden Village project, first mooted 10 years ago, was set to deliver 4,000 homes, with 150 expected by the end of 2026.

However, the council’s corporate finance committee heard that this target is now unlikely due to the volatile housing market and economic downturn.

Despite these challenges, there is still hope for some key worker housing near the Royal Cornwall Hospital within the next two years.

The project was set to deliver 4,000 homes, with 150 expected by the end of 2026

Phil Mason, the council’s strategic director for sustainable growth, said the "context" of the development had been "severely constrained" by costs going up, land values going down and interest and gilt rates being high.

He stressed the need for a two-year plan and "engaging with the market".

"This isn’t about stopping, it’s about finding a model that works and an interim way in which we can get some early delivery, principally around housing which would suit key workers; people who would need homes near the hospital and college," he said.

The development, which was originally allocated £159m to support it, is managed by LGV Property Holdings LLP, a partnership 98% owned by Cornwall Council and 2% by Treveth, the council’s construction company with the aim of it being built over 20 to 30 years, said the Local Democracy Reporting Service (LDRS).

Langarth Boulevard - an artist's impression of the planned Langarth Garden Village

Committee chairman John Keeling said it was "the start of a long journey", while councillor Stephen Barnes expressed disappointment.

"This doesn’t look like a very good bet to me for investing money," said Barnes.

“Being this far into a plan, I would have hoped we would have a better idea of when we’re going to get some money back."

Mr Mason said the money had been used to buy land which would "always" be of value.

The Langarth Business Plan 2024-26 will now proceed to the council’s Conservative Cabinet for approval, with hopes of eventually building about 250 homes annually.