New homes work halted by company collapse is back on track

Building work at Saxon Way, Jarrow.
Building work at Saxon Way, Jarrow.

Work is back on track at a housing development site in South Tyneside – but the future is still unclear for two others hit by a company collapse.

Eighty-eight affordable homes are being built at three locations across the borough – at Stanley Street and Saxon Way in Jarrow and West 
Way in West Park, South Shields.

We are pleased to say work has commenced in Stanley Street, Jarrow ... we are also working tirelessly to appoint a new contractor for the other two sites with a view to completing the works as soon as possible.

Brian Scott, trust company secretary

But last month the Gazette revealed how work on the three sites has been halted after Yorkshire-based construction company Southdale collapsed with the loss of 30 jobs.

The company’s demise was a blow to a five-year-plan to build 400 new homes in the borough through the South Tyneside Housing Ventures Trust Ltd.

Work has now recommenced in Stanley Street.

Talks are still ongoing to appoint a new contractor for the other two sites.

Brian Scott, the trust’s company secretary, said: “We currently have a contract with Southdale to build 88 properties at three sites in the borough.

“These properties are in various stages of completion.

“We are pleased to say that work has recommenced in Stanley Street, Jarrow, with many of the properties now available for rent.

“While we continue to work with the administrator, we are also working tirelessly to appoint a new contractor for the other two sites with a view to completing the works as soon as possible.”

The Trust is holding open days on site on June 19, 20, 26 and 27 for people interested in the Stanley Street properties.

The company was set up in 2013 by South Tyneside Council and South Tyneside Homes to take the lead on building new homes in the borough.

It is an independent, not-for-profit company and is run by a board of seven members, including three local councillors.

When built, the properties are to be managed by South Tyneside Homes – which look after the borough’s social housing stock of about 18,000 – and allocated through the council’s allocations policy.