A SLOWDOWN in the housing market has delayed the start of Dundee’s Western Gateway housing development.

As many as 1500 homes were projected for the countryside to the west of Dundee.

Earlier this year, two companies central to the plans for hundreds of new homes on land south of Liff said the development was very much alive despite growing concerns about financial markets and the need for costly unction improvements.

Cala Homes said it was keen to make a start this year and Gladedale is expected to have homes available for sale next year.

Both were said to be in the final stages of discussions with council planners which it was hoped would lead to planning applications being lodged.

Since then, the squeeze on mortgages and uncertainties surrounding the availability of credit have affected housing developments, and construction companies have been reining projects in.

As the credit crunch began to bite thousands of jobs lost have been lost and many companies have gone to the wall.

Gladedale shut its Dundee office in September with the loss of around 30 jobs, blaming a “lack of mortgage availability and consumer confidence” which had affected sales.

Asked their position in relation to Western Gateway, the company said it remained committed.

A spokeswoman said, “Gladedale is working with the council towards concluding the Section 75 agreement which will allow the planning consent and road works at South Gray Village to progress.

“We are also in discussions with other developers involved and are collectively working towards the delivery of the Dundee Western Villages.”

Cala Homes was asked to state its position but was unable to provide a spokesperson to comment.

Dundee City Council also said the development remained alive.

A council spokesman said, “Despite the current uncertain financial climate, the fine details of the necessary arrangements to bring forward the development of the Western Gateway are still being worked on.”