Work on 158 homes to kickstart Walsall’s multi-million pound Waterfront scheme looks set to get under way within two months, it emerged today.

The news comes more than two years since developers Jessup won planning permission and extinguishes fears the major project had stalled after plans for a 120-bed hotel ground to a halt. A start date of September has been set for construction of the homes on the southern part of the Waterfront site, between Charles Street and Walsall Canal.

Regeneration bosses are hopeful a deal with an unnamed social housing group will be tied up in the coming weeks, leaving the path clear for the scheme.

Clive Jessup, director at Cannock-based Jessup, said the major step forward had been made possible by a grant issued through a government scheme designed to restart stalled housing schemes.

“Hopefully we will have a favourable result soon,” he said. “We are in advanced talks with a registered social landlord and September is our scheduled date for starting the work.

“Assuming everything goes to plan, this is great news for Walsall.

“It’s nice to see money going into something constructive rather than into bankers pockets.”

He added that the number of flats in the overall development had been reduced and the number of houses increased in response to a drop in demand for town centre apartments, bringing the total number of homes down from 360 to 322.

An amended planning application for one part of Waterfront South was submitted this week, with a bid for 61 flats and 13 houses reduced to just 17 apartments but 22 houses.

Landscaping work began in the Waterfront North section, off Wolverhampton Street, last month.

The land next to Walsall’s canalside had been sealed off for months, with plans afoot to create homes, offices, retail and leisure space, as well as restaurants and cafe-bars. But Whitbread’s ann- ouncement that it had put plans for a 120-bed Premier Inn and a restaurant on ice sparked fears the development would not get under way until economic conditions improved.

It had been hoped the hotel would prove the catalyst for the rest of the scheme.