Plans to build 120 homes on eight acres of redundant hospital land in Shrewsbury have been put on hold after the developers, Crest Nicholson, ordered work to stop this week.

An application for the site, which includes 43 affordable homes, was due to be submitted this summer but Crest Nicholson ordered work on the development to halt this week.

Today Councillor Peter Nutting, leader of Shrewsbury and Atcham Borough Council, said there were concerns Shrewsbury may not meet its housing targets.

But he said it could mean developers becoming more careful about speculative building in the future.

“Shrewsbury is a growth point and we are expected to build 400 houses a year for the next few years and this may now prove difficult,” he said.”It’s becoming apparent now that some of the builders, who formally built speculatively, are starting to talk to the council and social housing associations about building affordable houses.”

James Mumby, of Pegasus Planning Group, which is working on behalf of the developers, confirmed he had been instructed to stop working on the plans.

He said the Copthorne South site, which was used for health services and offices until late 2005, had been cleared already.

“As planning consultants, we have been instructed to stop work at the moment. We have just completed a public consultation project and it’s come to a halt at the present time,” he said.

No-one at Crest Nicholson was available to comment.