Construction has "stalled" at a new Kenilworth housing estate due to problems with 'affordable' homes, a developer has said.

Persimmon Homes says it has not found an affordable housing provider for phase two of its major estate off Leamington Road.

The developer wants to change the approved mix of affordable homes in order to attract a new partner.

"Development commenced in September 2024, however, construction has now stalled as Persimmon is unable to deliver the approved affordable housing mix until a solution is reached," an application to Warwick District Council said. 

"Seventeen dwellings have completed construction, with a further 83 under construction, including a proportion of first homes which do not require delivery via a registered provider. 

"However, there is now a significant barrier to advancing construction of the social rent, affordable rent and shared ownership units, given the absence of any suitable offers for these units from a registered provider. 

"This is a significant obstacle to the overall deliverability of the scheme, including market and affordable housing and supporting infrastructure, which is for the benefit of current and future residents of Kenilworth."

Persimmon says this is holding up the construction of the new spine road which will connect Leamington Road and Glasshouse Lane.

An application to the district council wants permission to change the affordable housing mix mostly to 'discounted market sale'.

When plans were first signed off, the majority were to be either social rent or first homes.

There would still be the same number of affordable homes - 63.

"This S.73 application is intended to amend the affordable housing mix in order to facilitate delivery of market and affordable housing as well as infrastructure provision, including the spine road and community centre," the application said.

It added: "No suitable offers for the social rent, affordable rent and shared ownership units have been received, despite extensive marketing."

However, the change in direction has been met by opposition from Kenilworth Town Council which has objected to the application.

The council wrote: "There was concern that this was a fundamental change in the affordable housing tenure. 

"Members felt strongly that Kenilworth needed a mix of social rent, affordable rent and shared ownership homes, something lacking in the town.

"Whilst members understood there was a question over viability of the agreed affordable housing tenure, there was a unanimous agreement that the proposed adjustments were not the solution, and the developer should reconsider their proposals for the registered providers."

Click here to see the full application.