A developer has finally been selected for Farnham’s long-derelict Woolmead site, Homes England has confirmed.

The government housing agency announced that Farnham Estates has been chosen as its preferred partner to take forward the controversial East Street scheme.

A spokesperson for Homes England said: “Homes England is pleased to announce that Farnham Estates have been selected as the preferred partner to take forward the Woolmead site.

“The Agency will enter a Conditional Freehold Sale Contract with Farnham Estates subject to them securing full planning permission.

“Farnham Estates are a local SME house builder. Homes England have owned the site since April 2024 and look forward to working with Farnham Estates and interested parties to bring forward a new scheme at the site. Further announcements about the site will be made as progress is made.”

A spokesperson for Farnham Estates said the company was “delighted to be Homes England’s chosen developer partner on the Woolmead, and to be given the opportunity to bring forward a key site in the town centre”.

They added: “Being a local SME developer, we completely appreciate very high level of interest the site has received. We want to assure the local community that our proposals working with Homes England will go through a full and thorough public consultation and we look forward to presenting our proposal to all stakeholders in the near future.”

The announcement marks a major breakthrough for one of Farnham’s most notorious town-centre eyesores, which has stood empty since the demolition of Woolmead House in 2018.

The former retail and office block was demolished to make way for a major mixed-use redevelopment, but the project stalled amid rising construction costs and viability concerns under previous developer Berkeley Homes.

Homes England acquired the site through its Brownfield Infrastructure Land programme and has spent the past two years attempting to secure a viable development partner. The site was re-marketed last year after an earlier sale process collapsed.

Existing planning permission allows for 138 apartments and more than 4,000 square metres of commercial space, although Homes England has previously indicated that revised plans could be considered.

The Woolmead has become a major issue in Farnham, with residents and businesses repeatedly criticising the lack of progress and the impact of the vacant plot on the eastern end of the town centre.

Earlier this year, Homes England officials met local councils and Farnham and Bordon MP Greg Stafford following mounting pressure for action.

According to the company, Farnham Estates has specialised in land investment, development and advisory work across London and the South East since 1993.