Work has started in Warwickshire on a £4 million scheme to transform a Grade two listed building and its grounds into affordable homes and apartments.

Community regeneration specialist Frank Haslam Milan (FHM), part of the Keepmoat group, is building 37 new build houses and eight apartments at Shipston on Stour in partnership with developer Orbit Homes. Funding for the project has been provided by the Homes and Communities Agency (HCA).

The sod cutting ceremony took place with Chris Jones, Development Director of Orbit Homes, Fraser Mercer, the Managing Director of FHM and Baggi Matu, the Investment and Regeneration Manager from the HCA in attendance.

The work will involve transforming Shipston House on Tilemans Lane into apartments while preserving the building’s attractive exterior and Grade two listed status.

There will also be new homes built on the site alongside Shipston House and the scheme, which includes the installation of PV solar panels, has been classed as Code Level 3 under the Government’s Code for Sustainable Homes – the main benchmark for energy efficiency.

The scheme will consist of 19 two bedroom houses, 14 three bedroom houses and 14 four bedroom houses with 18 available for shared ownership. The remaining houses and all the apartments will be available for affordable rent.

Shipston House, which is a former workhouse, will consist of five one bedroom apartments and three two bedroom apartments. All works are due for completion in October.

Site Manager Sean Talbot said: “We are delighted to be working with Orbit Homes on this exciting new scheme, particularly me personally as it’s the first time I’ve worked with the client.

“The main challenge of this project has been the conversion of Shipston House while still preserving its Grade two status. We’ve also tried to make sure that the development will have a nice detailed finish and will be appealing to the eye.

“Apart from the building works, we also have plans to create at least one apprenticeship during the scheme and we try to give something back to the community by supporting local labour and buying local materials whenever we can.”

Development Director for Orbit Homes Chris Jones said: “We are proud to be working on a development that will provide much-needed affordable accommodation for local people, and also one that will bring back into use a building of such historical value as Shipston House.”

Investment and Regeneration Manager for the Homes and Communities Agency, Baggi Matu, said “We are pleased to be able to support this scheme as it will not only provide new affordable homes to help local people stay in the area but it will also bring the Shipston House building back into productive use.”