Southampton City Council has announced the appointment of a contractor to progress design working and secure detailed planning consent for a scheme of around 200 new "affordable homes" off Paulet Close in Townhill Park.
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Drew Smith Ltd was announced as the contractor for the next phase of work following a competitive tender exercise.
The scheme will comprise several medium-rise blocks providing around 200 residential flats.
The council says together with Drew Smith it will undertake "a thorough community engagement process as the designs develop and before a planning application is submitted".
Cllr Satvir Kaur, cabinet member for culture and homes, said the company has a "good track record of working with the council to deliver homes that local people need".
"This appointment is an important milestone in the regeneration of Townhill Park and forms part of the Council's pledge to deliver 1000 council homes by 2025," she said, adding that the new homes would focus on "affordability, design and energy efficiency".
Kim Ayling, chair of community group SO18 Big Local, said: "As a local resident of Townhill Park, it is great to see the estate regeneration continue to move forward with the appointment of the contractor for the next phase of homes.
"In my role as Chair of SO18 Big Local, we as a group are thrilled to be working so closely with the Council on the regeneration of Townhill Park. It is fantastic to see the community at the heart of this landmark project."
Cllr Satvir Kaur and Kim Ayling (Chair of SO18 Big Local) on the site of Plot 2, December 2020