The council has appointed Sovereign Network Group (SNG) to build around 170 “affordable homes” at Townhill Park.
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SNG, which provides housing across the south, has been named as the provider to build homes on Plot 2 - bounded by Meggeson Avenue, Townhill Way, Paulet Close and Cutbush Lane - and on Plot 9 at Rowlands Walk, under the Affordable Housing Framework (AHF).
Through the AHF, the council will transfer land to SNG to deliver the scheme, with nomination rights giving priority to people on the housing list.
The news follows an announcement last November that Abri had been appointed to build up to 189 new homes across Plots 5 and 6.
Cllr Andy Frampton (Lab), cabinet member for housing at Southampton City Council, said: “We understand that there has been a lot of frustration in the community at the speed of this delivery.
“However, the council is determined to see shovels in the ground as soon as possible and this announcement will go a long way to realising the ambition of Townhill Park residents.”
In July opposition council leader Peter Baillie (Con) said “you could not make it up” describing the latest delays to regeneration at Townhill Park, which has taken over a decade.
As reported, in February, SNG won a planning appeal against the council to allow it to build 84 homes on the former St Mary's Independent School playing fields, off Midanbury Lane.