Developer faces axe over Bilston homes funding

The developer behind the first wave of housing at the £176million Bilston Urban Village will be sacked if it does not come up with a scheme to get homes built.

Wolverhampton City Council spent £870,000 which it received from quango Advantage West Midlands securing the services of London-based Places for People. Now the company faces being dropped in favour of other private sector developers if it does not come up with the cash to get the 120 homes built. No contracts have ever been signed.

The only source of funding for which Places for People applied was the Kickstart scheme but this was turned down before the General Election.

It now leaves no secured funding to get homes built.

Council chiefs said today that there was no question of the money being wasted, because it had also funded the information pack to include environmental reports, site and topographical surveys, environmental assessments, draft legal documentation and economic appraisal of the scheme.

A letter from the council's chief regeneration officer Kerry Bolister says Places for People can, if it wishes to, just walk away from the deal.

Cabinet member Councillor Paddy Bradley said: "The council continues to be very proactive in securing progress with Places for People but will consider alternative solutions with other potential private sector developers if a satisfactory resolution is not forthcoming."

She said the council was awaiting a review of AWM's budget after the Government ordered it be cut by £37m.

Labour councillor Keith Inston, who is on the audit committee, said: "The officers and Places for People have been discussing contingency plans.

"They have to get a Plan B in operation because, as it stands at the moment, these houses are not getting built."

Other major schemes that are part of the Urban Village, such as the creation of the £23m South Wolverhampton and Bilston Academy and a £15m leisure centre, are going ahead.