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A long-standing SME housebuilder whose major site was subject to a 鈥渃all-in鈥� by Michael Gove late last month has decided to shut up shop, 好色先生TV understands.

Several independent industry sources have said that 拢33m-turnover Warwick-based AC Lloyd Homes, which for 200 homes at Chesterton Drive, Whitnash, Leamington Spa in the wake of Gove鈥檚 call-in decision, has now decided to shut down entirely.

However, it is understood the decision does not affect the wider AC Lloyd Group, which also acts as a land trader and commercial developer, and will continue to trade.

The firm has not commented on the news, however, Paul Brocklehurst, chair of the Land Promoters and Developers Federation, said in a post on LinkedIn that 鈥淎C Lloyd has taken the decision to withdraw from housebuilding activities after 75 years鈥�, adding that 鈥渢he company鈥檚 strategic land, commercial development and investment businesses are unaffected鈥�.

The decision to shut comes despite accounts for the year to September 2022, filed by AC Lloyd Homes, stating the company enjoyed a 鈥渧ery sound result鈥� for the year, recording profit of 拢9.9m on turnover of 拢32.7m. But the results statement identifies the Leamington Spa site as likely to be ready for construction 鈥渄uring 2023鈥�, something which is now not possible given the call-in.

The Chesterton Drive application was called in on 11 May despite it having received outline approval, and the local authority having resolved to grant reserved matters approval back in December.

Developer AC Lloyd withdrew its application for full planning at the end of last month, with the decision in the last week.

Accounts filed by AC Lloyd (Asset Management) Ltd, which publishes consolidated accounts for the whole group of businesses, shows that the housing business appears to have produced a large proportion of the group鈥檚 profit and turnover. The Group reported pre-tax profit for the last year of 拢11.7m, on turnover of 拢42.9m, and employed 47 staff.

It is not known if staff roles will be put at risk by the move to shut the residential business down.

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The decision by AC Lloyd to shut its residential housing business comes amid controversy in the housing sector over the Gove鈥檚 decisions to call-in several schemes on design grounds, and his wider planning reforms.

The controversy was sparked by Gove鈥檚 intervention in a 165-home development by Berkeley Group, which he now looks set to rethink. The developer of a planning proposal for 150 units on five hectares of land south of Old Mill Road, Sandbach in Cheshire East, also called in on similar grounds has pledged to fight Gove over its proposal.

The LPDF鈥檚 Brocklehurst added: 鈥淗ousebuilding is a capital and operationally intensive business with high fixed costs. For a medium sized business with perhaps three to five sites any delay to one can seriously impact cashflow to meet monthly fixed costs.

鈥淲hen the delays within the planning system (including discharge of conditions), combined with other regulatory burdens, utility drawdowns, politics and cost increases are overlaid then the impact on a small or medium sized business becomes magnified.

鈥淚t is these issues that the government (or a future government) needs to resolve.鈥�

AC Lloyd declined to comment. The Department for Levelling Up, Housing and Communities has been contacted for comment.