A HOUSING development that was shelved because of the economic downturn could be kick-started again and marketed as affordable housing.

The 17 incomplete properties in May Lane, Dursley, have been earmarked by the district council for purchasing as affordable homes.

The council will not buy the site, but would help a housing association bid for the houses with the aim of getting the properties finished and marketed as soon as possible.

It could mean the new builds would be sold under part-ownership schemes, in which homebuyers need a mortgage for just a small proportion of their value, allowing more first-time buyers and low-income families to get onto the property market.

The May Lane development, which was previously owned by Cotswoldgate who went into administration in April 2008, is just one of a handful of potential 'stalled' sites identified by the district council.

The announcement was made at a Stroud District Council meeting by Cllr Frances Roden, cabinet member for housing.

She told the Gazette: "A lot of effort has gone into this and we are trying our best to work with developers on this scheme.

"The housing team have been doing a really good job and this is an excellent example of spending our money wisely to get the best from what is out there."

Cllr Dennis Andrewartha, county councillor for Cam and Dursley, said: "I think it is fantastic news, if it goes ahead then it will be excellent for the area.

"Most of my case book is made up of people desperate to find affordable housing and this would go some way to alleviating that problem."

The development in May Lane is a mix of two and three storey houses and flats. Work started on the site in July 2007 but stalled in spring 2008 just as the economy started to take a nosedive.

Cotswoldgate was one of the first development companies to be hit by the credit crunch and the site was eventually bought by Aurelian Property Finance. Work started again last summer but the homes have still not been completed nearly a year later.

A Stroud District Council spokesman said: "Across Stroud district – in common with many other parts of the country – a number of market housing sites have stopped being built due to the current economic situation, so we’ve been working with affordable housing providers and the Homes and Communities Agency, the government agency that funds affordable housing, to identify sites which might be suitable to be purchased by providers of affordable housing."

No one from Aurelian Property Finance was available for comment.