THERE was a cautious welcome in Lydney this week for the news that work on 133 new homes – part of a major 600-home scheme – is to start 'imminently'.

Included in the plans for developing parts of the Federal Mogul site and golf course are new 'employment space', and a new roundabout and spine road. The developers reckon some 150 local jobs will be created.

Saying he thought the news was "good for the town" deputy mayor Cllr Terry Glastonbury added: "However, there are still infrastructure matters to be addressed.

"Overall, it will create local jobs and bring money into the town, and that can only be good for us."

National regeneration specialist, MMC2 Land and Regeneration (MMC2) on Monday announced that it has awarded contracts to deliver the first phase of the major mixed-use development.

A spokesman told the Review: "Work has already started on demolition of old factory sites and home building is due to start imminently. The first homes will be completed by November this year the whole first phase by 2012."

In a contract worth £16m, Kier Partnership Homes will construct a range of 53 new homes available to purchase on the open market and 80 affordable homes. The affordable homes will be owned and managed by the Bromford Group which is investing approximately half the £10m cost of building them.

The Homes and Communities Agency (HCA) is investing the remaining £5m that makes it possible to deliver affordable homes as part of the first phase.

MMC2 is executive developer of the 49 acre Lydney development which in its entirety has planning permission for 600 new homes and 10 acres of new employment space, as well as significant new infrastructure and sustainable green open space.

"This first phase of development will deliver around 150 jobs in addition to the new homes, a 40 metre new roundabout and 10 metre new spine road into the site, and sustainable drainage solutions," states MMC2.

Managing director Mark Russell said: "I'm delighted to confirm MMC's partnership with Kier and Bromford. This shows that we mean business and are forging ahead with this vital scheme for Lydney."

Chris King, Kier Partnership Homes Managing Director, added:

"Kier Partnership Homes is pleased to be working with MMC and Bromford Group to bring about transformational change on this first phase at Lydney.

"As affordable housing specialists the Lydney development adds to our growing portfolio of projects being delivered in partnership with the HCA with whom we have National Developer Partner status."

David Warburton, HCA area chief, said: "It's great news that work to provide much needed affordable housing in Lydney has now started.

"The Forest of Dean is not alone in having high demand for affordable housing, but the effects this can have on local communities can have negative impacts and force people to move away from areas because they cannot access a home.

"As well as helping to address this, the HCA's investment is also helping to safeguard or create local apprenticeships. This has to be good news for Lydney."

Bromford chief executive Mick Kent said: "This is an exciting milestone for everyone who has worked so hard to make this multi-million pound transformation become a reality.