A site previously earmarked for 60 apartments will now be developed into 18 houses and six bungalows by Shropshire Council’s new housing company.

Cornovii Developments Ltd, which launched last year with a £14 million loan from the council, has revealed initial plans for a housing scheme at Ellesmere Wharf.

It is the third location to be taken on by Cornovii, which has already drawn up plans for sites St Martins and Shrewsbury.

The company hopes to develop up to 50 sites across Shropshire in the coming years in a bid to address the county’s shortage of housing, with a particular focus on building two and three-bed properties.

A report to Shropshire Council’s housing supervisory board ahead of a meeting next week says the Ellesmere Wharf development could be completed within two years, subject to planning permission.

The report says: “Work is in progress to gather information from various surveys, however, despite the remediation works completed to date, the site remains challenging for several reasons.”

Problems include the proximity of trees with large root protection areas, site contamination, a live underground electrical cable, possible underground culvert, and a gas easement “preventing construction on significant portion of the site”.

The report adds: “Additional remediation funding has been secured and Cornovii Developments Ltd anticipates submitting a planning application in summer 2020, upon completion of public consultation.

“Subject to planning being achieved, start on site is anticipated early 2021 with completion in Summer 2022.”

The development will include 16 open market homes and eight affordable homes.

The six bungalows will each have two bedrooms and be adapted for wheelchair users.

Of the houses, five will have two bedrooms, 10 will have three and three will be four-bed homes.

Shropshire Council was awarded a £544,000 government grant in 2018 to prepare the land for development, and the authority said there were plans for 60 apartments to be built there, some of which would be supported accommodation. The report does not say why the plans have changed.

The housing board will meet on Thursday, June 11, to discuss Cornovii’s progress in preparation for work to start at its first three development sites.

Plans have been submitted for 33 houses to be built on the site of a former care home in Frith Close in Monkmoor, Shrewsbury, and a planning application is expected to be lodged this month for 40 homes to be constructed on the site of the former school in Overton Road, St Martin’s.

It is hoped work on all three sites will be completed by summer 2022.