Pub bought by council for £1m sold at 72% loss

A former pub bought for £1m by a Cornwall Council-owned firm has been sold for two thirds less.

The council bought the former General Wolfe pub on Bodmin Road in St Austell through its public services company Corserv for £1m in 2020 to provide temporary housing.

However in 2025 it said the projected costs of conversion work had increased significantly with estimates at more than £2.5m, according to the Local Democracy Reporting Service.

As a result, the building was put up for auction with a guide price of £150,000 and on Thursday it sold for £275,000 - a 72% loss. A new owner has not yet been reported.

Cornwall Council leader Leigh Frost dismissed the suggestion of an inquiry into the council's purchase of the building.

Speaking at a cabinet meeting on Wednesday, he said the former pub was "bought as part of a programme for much-needed temporary homes".

Frost said due to "rising building inflation and things like Covid", alongside the "quick deterioration of the building", its plans to renovate the property fell through.

He said: "What is important is to try and find a new use for this building that's having a detrimental effect on the town centre.

"I want the council to put all of its energy into this process rather than going over the same grounds over and over again."

Follow BBC Cornwall on X, Facebook and Instagram. Send your story ideas to spotlight@bbc.co.uk.