Building work on a £16 million development to transform a Walsall estate has been halted after the house builder went into administration.

Construction of houses and flats in Bentley has been left half-finished following the collapse of Concept Development Solutions Ltd.

It had been contracted by social landlord Walsall Housing Group, WHG, for the 130-homes scheme on four different plots of land.

Bosses at WHG today said they were on the verge of appointing a new contractor to take over and that work would get under way again next month. The financial troubles at Birmingham-based Concept Development Solutions Ltd have seen the loss of 31 jobs plus sub-contracting trades workers.

And work today remained on hold at the site of the former Fairview and Grange Courts, in Western Avenue and the former Old Hall pub site, in Churchill Road.

The new Appleyard Close development off Cunningham Road was completed before the collapse.

WHG spokeswoman Lyndsey Hunt said: “The regeneration of Bentley is a top priority of ours and we have worked closely with the community to establish plans for the redevelopment of four vacant sites.

“Unfortunately, the contractor developing the sites recently went into administration so we have reluctantly had to postpone work for a short period.

“We are now on the brink of signing an agreement with a new contractor who will continue and complete the work.

“The name of the new contractor will be announced shortly.”

The Appleyard Close development of eight bungalows and four flats was created for people aged over 60 and 55 respectively, and replaced a row of derelict garages in Cunningham Road.

Bentley and Darlaston North representative Councillor Bill Madeley said: “I would like to reassure residents that every effort is being made to complete them. I have been in talks with WHG and as a result 24-hour security has been introduced at the construction sites.”

A further 18 jobs have also been lost at Concept’s parent company Old House Holdings as a result of the collapse.

The project consists of 11 two-bedroom houses, 10 three-bedroom houses, five four-bedroom houses, 36 two-bedroom apartments, eight two-bedroom bungalows and 60 homes for the over 55s.

It is being funded by WHG, the Government’s Homes and Communities Agency and VIEW, the regeneration fund jointly managed by WHG and Walsall Council.

The entire project is to be finished by October 2010.