Hospital flats plan gets credit crunched

Sep 5 2008 By Ed Saunt

Ashford Hospital

A 170-flat development at Ashford Hospital has been shelved due to the credit crunch.

Inland Homes blames market pressures for its decision to withdraw its planning application to redevelop the former maternity wing in London Road, which it bought from Ashford & St Peter's Hospitals NHS Trust.

Its development director Steve Trenwith said: "We are reviewing our options and the main reason is the market is not as bouyant as it was.

"It's happening across most developers. Our intention is still to redevelop the site but unfortunately this marketplace is going to be with us for a number of years."

But, despite the slump in the housing market, George Wimpey Homes put in planning permission last week to bulldoze the Bridge Street car park and build 143 flats.

The housebuilder's parent company Taylor Wimpey lost £1.5bn in the first six months of this year but design manager Bill Luck said it intends to go ahead with the much-mooted development.

He added: "At the moment our intention is to proceed with it but you can never tell what will happen in six months time."

The credit crunch has raised doubts about the future of other sites in the borough, such as the Oast House in Kingston Road, Staines, which Surrey County Council is hoping to sell off for flats.

Spelthorne councillors are concerned about the ramifications for the council's target of building 166 homes a year if there are not sufficient proposed developments to fulfill it.

Planning committee committee, John O'Hara said: "It throws our housing targets into confusion but I think the government will have to take account of the problems we are facing."