Work on a major new housing development in Shropshire which has stalled for nearly 18 months could finally begin again in January if it wins new funds.

Persimmon Homes said construction work on its Spring Gardens site in Shrewsbury, could restart in three months, if it gets vital Government funding which it is expecting to find out about “imminently”.

The firm halted work on the 188-home site in May because of problems in the mortgage market.

In the summer, bosses from Persimmon applied for £1.8 million under the Kickstart scheme towards the building of 50 homes at the development in Ditherington.

Neil Follows, managing director for Persimmon Homes North West, today said: “We have been short-listed to receive funding from the Government’s Kickstart initiative for our Spring Gardens development in Shropshire and are currently still being validated by the Homes and Communities Agency for the funding.

“We are expecting a decision on this imminently. In the event we are successful with the funding, we anticipate work on the development to commence in January 2010.”

Several developers and housing associations have already received a share of £925 million to help them get schemes back on track by the end of the year.

Last month motorists travelling through the Ditherington suffered delays as roadworks were put in place while work took place to connect power, water and phones to the estate.

More work is expected to take place in January when a mini-roundabout is due to be installed.

Mr Follows has already apologised for any disruption the work may cause.