A HOUSING association is set to make a fortune on a property it bought for £1.

Rooftop Housing Group stands to pocket about £350,000 assuming the asking price is met for the detached Victorian villa at 49 Cannon Street, Worcester.

Bosses say that money will be invested into providing alternative accommodation to help meet housing needs in Worcester.

Tim Wade, head of development at Rooftop Housing Group, said: “Any proceeds from the sale will be invested back into the provision of much-needed affordable housing.

“At a time when all social housing providers are facing severe pressures on their finances we need to look at all possible avenues for raising capital for our development work so we remain hopeful that some positive news will come out of this sale.”

The Worcester News has previously reported how proposals to transform Milverton, as the property is known, into a seven-bed house for homeless people aged 16 to 25 were met with concern by families and residents living nearby from the very beginning.

Worcester City Council’s cabinet authorised £30,000 to be set aside to help Rooftop Housing refit the property for use as a hostel in December 2009 but a month later between 80 and 100 people attended a meeting to voice their fears that it would damage the residential neighbourhood.

In November last year Rooftop called campaigners to let them know that the scheme had been dropped and they will now be breathing a sigh of relief that an application has been submitted to the city council to turn the property back into a six-bedroom home.

A ‘for sale’ sign also went up this week.

Mr Wade said: “Our intention was to convert that particular property into a facility for young homeless people in Worcester. However, despite support from the city council it became apparent that there was local opposition to our plans and therefore we have no other option but to place the property for sale on the open market.”

Rosey Badham, housing needs and development team manager at Worcester City Council, said while the “size and nature of the property makes it appropriate for its current or similar use, local opposition to proposals for a supported accommodation scheme in this property was such that its use for this or a similar purpose is not considered possible.

“The change of use and subsequent disposal of this property will allow Evesham and Pershore Housing Association to reinvest in alternative accommodation in the city to meet housing need.”

An open housing viewing of the property, which is in need of modernising, has been arranged to take place between 10am and 12.30pm on Saturday, October 15.