Oak Tree Housing Association has announced that it will cease development at Strone Farm in Greenock, Inverclyde, following spiralling construction costs.
Originally designed to deliver 15 affordable homes, the project has encountered significant challenges since construction began in 2019. These include the liquidation of the appointed contractor in 2022 and rising material and construction costs, exacerbated by the aftermath of the pandemic.
After conducting a comprehensive review, we have now determined that the estimated cost to complete the development, including the funds already spent, would exceed £6 million. As a result, the development is financially unviable to progress and the strategic decision to halt delivery will safeguard our long-term financial stability and ensure the responsible management of our resources.
While the Strone Farm site will not be developed as initially planned, we are exploring alternative options for repurposing the site and we will initially seek to remove the existing structures and create green space for the local community to benefit from.
Sean Connor, Chief Executive Officer at Oak Tree Housing Association, said: "This is an incredibly difficult decision, but one that we believe is necessary to protect the interests of our tenants across the Inverclyde region.
“This is an exceptionally rare situation, and it is the first time in Oak Tree Housing Association’s 23-year history that it is stepped away from a planned development. I am truly disappointed that the development cannot progress as originally proposed however we are confident that our partners and the local community will agree that the increased spend associated with completing the site is not financially viable.
“Our commitment to providing affordable housing remains unwavering, and we will actively pursue suitable alternative developments.”
Managing more than 1900 homes, we are incredibly proud to support local residents across Inverclyde who remain our number one priority.