Work on new homes delayed by crunch

Plans to build more than 300 homes on Ellesmere's landmark Wharf development may be put on hold, with developers blaming the delay on the credit crunch.Bosses at Pochin Developments, which owns the site, say work to build the homes may now start next year. But they insist other parts of the scheme, including creating a new public square and opening a Tesco store, will go ahead according to schedule.

Homes, ranging from one-bedroomed flats to four-bedroomed houses are due to be built, as well as a creche, restaurant, cafes and car parking.

Brian Reay, director of Pochin Developments, blamed the current economic climate for the decision but remained confident the homes would still be built.

He said the company had to be "realistic" in terms of the economic situation.

"We are optimistic that this project will carry on, but one has to be realistic, and the market has changed from when the scheme was first planned," he said.

"Compared with where we were two years ago, the housing has been delayed, and instead of starting this year it will probably be next year, but it's a big scheme and there are other parts that will go ahead."

The first stage of the project to create the roads and infrastructure is near completion. The second phase of house building is now set to be undertaken after Tesco, a pub/restaurant and the new doctors surgery have been built.

Mr Reay also said staff were doing all they could to bring forward the new medical centre.

Up to 150 new jobs are set to be created with the opening of the new Tesco store.

By Deborah Collins