Key facts
- The Stirchley Cooperative Development (SCD) in Birmingham is at risk of collapse.
- The project aimed to provide 39 affordable, landlord-free homes owned by residents.
- A dispute with housing association GreenSquareAccord (GSA) over construction costs has emerged.
- GSA claims a £1.16m shortfall and will not transfer land ownership.
- Prospective residents and businesses are facing uncertainty and financial hardship.
- Local political figures have called on GSA to uphold its commitments.
A community housing development in Birmingham, intended to provide 39 affordable and landlord-free homes, is facing serious risk of collapse due to a dispute over construction costs with the housing association that owns the land.
The Stirchley Cooperative Development (SCD), founded in 2016 by local residents and businesses, aimed to offer residents greater control over their living and working environments amidst rising housing costs. However, problems emerged when GreenSquareAccord (GSA), the housing association, took over construction responsibilities in 2024 after the original contractor went bankrupt, leading to delays and increased expenses.
GSA announced in March that it would not transfer ownership of the development to the community as originally planned, citing a £1.16m shortfall. Prospective residents, like retired lecturer John Holmes, are now left in limbo, facing homelessness. Business owners, such as Sean Farmelo of Birmingham Bike Foundry and Rachel Kershaw of Loaf bakery, are concerned about insolvency due to the delays and cost overruns, which they attribute to GSA's alleged mismanagement.
In a statement, GSA cited rising interest costs, inflationary pressures, and construction challenges for the increased costs, asserting it would be irresponsible to absorb the shortfall. They stated they are only seeking to cover costs, not generate a profit. Local leaders, including West Midlands mayor Richard Parker and MP Al Carns, have publicly supported the SCD, urging GSA to fulfill its commitments and not place the burden of mismanagement on the community organization.
In an effort to salvage the project, locals are exploring options such as seeking loans through non-equity bonds to bridge the funding gap.