Blow as firm stalls plans for homes

Homebuyers in Shropshire have been dealt a blow today after it was revealed the building of hundreds of homes has been put on hold.

Less than a month after Persimmon Homes announced work on a 106-home estate in Bridgnorth would not start because of problems in the mortgage market, the firm says construction has now been halted on other county sites.

Bosses say their 188-home development in Ditherington, Shrewsbury, as well as its homebuilding commitment as part of Ironstone, a consortium development in Lawley have been shelved until the market improves.

A spokeswoman for the firm said its developments at the old Bridgnorth College of Further Education site, Spring Gardens in Shrewsbury, and The Pastures in Telford were all on hold.

She added: "Other sites will be under consideration but no others are actually stopping."Dave Forshaw, regional construction director, for Persimmon said that there were groundworkers on site at Spring Gardens who were finalising work to roads.

He said: "It is our intention to commence existing carriageway works to the entrance of the site once the gas main to the entrance has been diverted and we will then consider when construction of this scheme may commence.

"It is important in the current economic climate that we regularly review all aspects of our business so not only we are in step with slower market conditions but that we maintain our strength as one of the country's most successful housebuilders."

Despite the gloomy outlook other Shropshire developers said they were still continuing development.

Howard Thorne, from Shropshire Homes, admitted the market had slowed which he said was due to a shortage of mortgages and low confidence from prospective buyers.

"However, Shropshire Homes is continuing to sell on all its developments and has no intention of closing down any sites in the near future," he said.

And Nigel Clarke, managing director of Galliers Homes, said the firm had just begun work on a new 30-home development in Hadnall and was continuing with developments in Powys, Oswestry and Market Drayton.