A major housing development involving almost 800 new homes in the Drumahoe area will not go ahead following news that the construction company involved has gone into administration.
DAB Developments, formally known as Brookview Developments, controlled by county Derry developer Denis Heaney, had planned to build the major development in Drumahoe but those plans have now been thrown into doubt.
The company has been involved in a joint venture to build 770 houses in the village but the plans did not come to fruition and now most of the land involved is up for sale.
Sinn Féin councillor Tony Hassan expressed his disappointment at the news and said it would add to the level of housing stress in Derry.
“The news that the development company which had once planned to build upwards of 800 houses in Drumahoe has gone into administration is of great disappointment.
“The plans at Drumahoe would have given a massive boost in helping address the chronic housing situation in Derry,” he said.
The announcement also prompted Colr. Hassan to call on the planning service to speed up the approval process for major housing developments planned for the city.
“There seems to be a steady trickle of building firms large and small going out of business in recent months and years.
“I believe that it’s very important that we do all we can to help the construction business here in these very challenging economic times by speeding up the planning process, particularly for large scale projects,” he said.
Colr Hassan said major housing projects would not only ease the housing situation but also provide jobs for the construction industry. “I believe that the planners could help ease housing shortages and give a massive boost to the construction industry in Derry by moving on plans for developments like the H2 site on the Buncrana Road. We need large scale construction projects taking place in our city which would provide hundreds of jobs and bring millions of pounds into the local economy.”