Lovell has been chosen to carry out a £5 million regeneration scheme to redevelop run-down shops in Great Cornard, Suffolk, with new homes, shops and flats.

The redevelopment is being led by Babergh District Council in partnership with Flagship Housing Group and Lovell. The scheme has received £1.6 million funding from the Homes and Communities Agency with the land donated by Babergh District Council.

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The Poplar Road shops, which date from the 1970s, will be replaced with 44 houses and flats and six new shops. The homes – 29 one-, two-, three- and four-bedroom houses and 15 two-bedroom flats.

Cllr Sue Wigglesworth, chairman of Babergh's Housing Panel, said: "I am delighted this very important and much-needed development for Great Cornard is getting off the ground.

"We know communities and people across Babergh need, and want, affordable homes and this development will give them that and also revitalise this estate. We owe a great deal to the close working between all our partners to finally make this vision a reality."

Lovell expects to complete the first phase of the scheme by the summer of 2011 and the overall development by November 2012.

(CD)