TOWNHILL: Social housing developer plans 27 affordable homes on derelict nursery site

A derelict plot in Townhill — one of Wales’s oldest council-built communities — could be about to get a new lease of life, with plans lodged for 27 affordable apartments on land that has sat empty since the demolition of a nursery school more than a decade ago.

The proposal, submitted by Swansea planning agents Asbri Planning, would see the former Bryn Nursery School site at the junction of Townhill Road and Tower Gardens transformed into a 100% affordable housing development — every home ring-fenced for people who cannot afford to buy or rent on the open market.

Behind the scheme is Castell Group, a Swansea Vale-based developer that specialises in affordable and social housing across south Wales, working with registered social landlords including Caredig and Hafod.

The site has a long and frustrated planning history. Bryn Nursery School closed in 2005 and was demolished around 2011, leaving a vacant brownfield plot on one of Townhill’s main roads. Earlier proposals for a 58-bed care home were approved but never built. In 2021, budget supermarket chain Heron Foods — owned by B&M — twice applied to build a small express-format store on the site, only for both applications to be refused by Swansea Council on retail and highway grounds. The land has remained empty ever since.

The development would sit in a neighbourhood with a particular place in Welsh housing history. Townhill — built on the hillside above the city from the 1920s onwards — was one of the first purpose-built council communities in Wales, planned to provide decent homes for Swansea’s working-class population at a time when much of the city’s housing was overcrowded and inadequate. A century on, the demand for affordable homes here hasn’t gone away.

The proposed development would comprise 17 one-bedroom and 10 two-bedroom apartments across several two and three storey brick-built blocks with pitched roofs, in keeping with the surrounding streets. The site — currently overgrown scrubland that has regenerated since the old nursery came down — is just 150 metres from Townhill’s local centre, within walking distance of shops, a pharmacy, a library and a primary school, and close to bus services into Swansea city centre and Morriston Hospital.

The scheme has already been through informal discussions with Swansea Council, which confirmed that the principle of residential development here was acceptable. The original proposal was for 33 units, but this was reduced to 27 following council feedback about the site’s proximity to Tower Court — a supported independent living scheme for older residents next door. A flat roof design was also rejected by planners who noted that the surrounding area is entirely pitched-roof in character.

The plans include 22 parking spaces, secure cycle storage, extensive landscaping and tree planting, sustainable urban drainage, solar panels and electric vehicle charging points.

The public consultation runs until 24 April 2026.

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Plans submitted for new Townhill budget supermarket
Heron Foods submitted plans for an express-format B&M store on the former Bryn Nursery School site in 2021 — both applications were refused.

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MS warns against ‘fear and lies’ over Stebonheath housing plan

The Labour MS said the claim, being shared by the “far‑right group” Voice of Wales, is “not true” and is not supported by any of the documents submitted to Carmarthenshire County Council.

In a Facebook post, Mr Waters said a respected housing association is working with a local developer “to turn the empty old Stebonheath School in Llanelli into small flats for local people to have a home – especially single parents currently living in B&Bs”.

He accused Voice of Wales of “trying to stir up trouble” and “spreading lies that the plan is for asylum seekers”, adding in capital letters: “THIS IS NOT TRUE.”

He said he understood that some residents would prefer the old school not to be developed, but insisted the application “should be decided by facts and by planning law, not by fear, division and lies”.

What the plans actually say

The application, reference PL/10217, seeks permission to convert the former Stebonheath Primary School building into 21 affordable homes. Planning documents state that 20 flats would be created in the main building and one in an attached cottage.

The Design and Access Statement, submitted by Caredig housing association and Swansea‑based Castell Group, says the scheme would provide 11 one‑bedroom flats and 10 two‑bedroom flats. It describes the development as “100% affordable housing” to be managed by a Registered Social Landlord and notes that the building has been vacant since mid‑2024 after efforts to find new commercial tenants failed.

The document sets the proposal firmly in the context of local housing need and Welsh Government policy for the Swansea Bay and Llanelli growth area. It refers to national planning guidance that encourages new homes in accessible locations close to jobs, schools and services. Nowhere in the application or supporting papers is there any reference to asylum accommodation.

Mr Waters said that across Wales “3,000 children [are] living in bed and breakfasts today… because they are on the waiting list for a home”, and highlighted a particular shortage of one‑ and two‑bedroom flats for councils to use. He argued that converting the long‑empty building into small flats for local people is one way of easing that pressure.

Voice of Wales’ record in the area

Voice of Wales has been active around contentious issues in south‑west Wales for several years. Swansea Bay News has previously reported that group co‑founder Dan Morgan received a suspended jail sentence for an insurance scam, and that the group urged parents to boycott a Llanelli school’s mosque visit in Swansea, prompting widespread criticism.

We have also covered disputes where the group was involved in claims about religion lessons at a Swansea primary school which the council later moved to correct, and a racism row linked to Cinema & Co in which the group denied allegations made against it. During the 2023 row over Home Office plans to use Llanelli’s Stradey Park Hotel for asylum seekers, Voice of Wales appeared at protests and Mr Waters has previously said members used aggressive language towards politicians and campaigners.

The group has consistently rejected accusations of racism and has defended its activities in past controversies.

Residents urged to check the portal

The Stebonheath application sits within a wider Welsh Government strategy that identifies Swansea Bay and Llanelli as a national growth area where new homes and investment are encouraged. The planning statement argues the site is well placed for walking, cycling and public transport, with schools, shops and employment within easy reach.

Mr Waters has encouraged residents to look at the plans themselves on Carmarthenshire County Council’s online planning portal by searching for application PL/10217, rather than relying on social media claims.

He said the future of the former school should be decided “by facts and by planning law”, not by those seeking to “stir up trouble” over what the development is for.

Swansea-based entrepreneur wins national recognition at Stelios Awards

The prestigious awards, founded by Sir Stelios Haji-Ioannou, recognise young UK entrepreneurs building high-growth businesses that create jobs and deliver lasting impact. Over 180 founders from across the country applied, with Dorian emerging as one of just three winners nationally — and the only winner from the construction and housing sector.

At just 29, Dorian has already built one of the fastest-growing development companies in Wales. From humble beginnings helping his parents manage their small property portfolio, he launched Castell Group to meet the urgent need for affordable homes. Since 2019, the company has delivered over 200 homes, has 280 currently under construction, and a land pipeline valued at over £220 million.

“This recognition from Sir Stelios and the Foundation is a real honour,” said Dorian. “The award funding will go straight into unlocking more social housing sites across Wales. There are over 1.5 million people on housing waiting lists in the UK — this work is more urgent than ever.”

Based in Swansea, Castell Group now employs over 60 staff across departments including construction, land and development, commercial, finance, and marketing. With continued plans to scale across the UK, the business has become a national role model for capital-light, client-led delivery of affordable housing in partnership with local authorities and housing associations.

The Stelios Philanthropic Foundation, which has donated over €84 million to good causes globally, launched the UK Young Entrepreneur Awards to highlight and accelerate businesses that drive job creation and long-term social impact. Past award recipients include startups in AI, tech, and sustainability. This year’s winners included an AI robotics company and an electric vehicle charging firm — with Castell Group standing out as a mission-driven housing developer.

“I’m incredibly proud of the Castell team — they were watching the awards live from our boardroom in Swansea,” Dorian added. “This award is a testament to their hard work, and to the potential for Welsh businesses to lead the way in solving national challenges.”

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