PLANS for a new nursing home to be built on a landmark council housing development have been hit by a setback - after the local authority was unable to find a construction company able to work on the project.

City of York Council’s plans for 165 new homes to be built on the former Lowfield School site in Acomb include a nursing home.

The 80-bed care home is a key part of the scheme and would be built on one side of a new village green.

The council invited developers and care home operators to bid to work on and run the new nursing home earlier this year.

And senior councillors were due to get an update on the outcome at a meeting on Thursday.

But the item has been withdrawn from the agenda because “officers have been unable to appoint a developer”.

A statement on the council website says: “Officers need to consult the market and consider the options before the executive can make a decision.

“This item has been withdrawn because following a tender process officers have been unable to appoint a developer.

“The provision of a care home on the site has been an integral part of the masterplan of the Lowfield green site from its inception. This has been included in all stakeholder and resident engagement about the site. The care home was included in the masterplan that was approved by planning committee.”

A spokesperson for the council said it could not comment further.

Senior councillors had been due to appoint a developer for the care home and enter into a contract to secure 25 beds - as part of the authority’s own provision - at the new facility when it opens.

A planning application for the development says: “Many residents agree with the need for housing, accommodation for older people, and a care home in Acomb.”

Work has already begun on site as part of the housing development.

The scheme also features plans for a police and health hub and a number of self-build plots.

And York’s first housing co-operative - of 19 new homes - will also be built at the site.

A planning application for the care home was due to be submitted once a developer and nursing home operator had been appointed.