The transformation of Wolverhampton’s former Springfield Brewery with 300 homes is in doubt after a housebuilder revealed it is to sell its part of the site.

News of the sell-off has raised fears the site off Cannock Road could remain derelict for years to come. Bryant Homes, part of the Taylor Wimpey group, has blamed falling demand for flats and townhouses for the decision to offload its seven-acre share.

Building work was due to get under way earlier this year but bosses put the start date back until next April due to the economic downturn.

They have now admitted the project was no longer viable.

Taylor Wimpey spokesman Adrian Regan said: “We are reviewing our position on the site and will be putting it on the market as part of this exercise.”

He added the firm would consider other uses for the site other than homes.

In May, Taylor Wimpey, which has a Bryant Homes base on Pendeford Business Park, announced it would close 13 of its 39 regional offices and shed 900 jobs.

Work on the brewery, which dates back to 1874 and employed hundreds of people its heyday before shutting in 1991, has hit a string of setbacks in recent years, the biggest being an arson attack in 2004.

City-based Simon Developments has been restoring some of the brewery’s old buildings and is still ploughing forward with plans for the remaining four acres of the site, which already has permission for 140 apartments and 30,000sqft of office and retail space.

Company boss Simon Hill said: “We are now looking at the feasibility of reducing some of the houses and increasing the commercial side of the project.”

Wolverhampton planning chief Councillor Malcolm Gwinnett fears the site could now lie empty for years.