Mass housebuilding project featuring 2,000 new affordable homes put on hold
Published by Max Salsbury for 24dash.com in Housing and also in Development, Finance, Local Government
Cornwall Chalk Pit
A massive housebuilding project planned for Cornwall has been put on hold because of the "depressed economic situation".
The scheme would have delivered 5,000 homes in total, 40% of which would have been for affordable housing.
Eco-Bos Development's £1 billion project would have seen the new homes built on five former clay processing sites in the St Austell area.
The firm - which is a joint venture company set up by Orascom Development and Imerys specifically for the Cornwall project - has said that it has had to scale back the plan but hopes it will only be for the short-term.
In a statement, Eco-Bos said: "We continue to monitor the external factors which affect our project in Mid Cornwall. Today we are faced with two significant challenges in progressing at our intended pace. These are a continuing depressed economic situation adversely affecting the property sector and a planning framework still in a state of evolution.
"Whilst there is ultimately a strong belief in a positive outcome to the long term regeneration of Mid Cornwall, we feel that the prevailing conditions outlined above means that we will not progress significantly in the short term.
"We therefore have to take a pragmatic and realistic approach in how we manage the situation and its impact on our project at this time. We have come to the conclusion that we need to re-structure the company and, for the foreseeable future, scale back our operations associated with the project."
Cornwall Council said: "We are obviously concerned at today’s announcement by Eco-Bos Ltd that they will be scaling back their plans for the Mid Cornwall eco-communities project. We will be looking at their announcement in detail and seeking an urgent discussion with the company to see what can be done to resolve the issues they identify."