£5million council housing development in Kinghorn halted as developer ceases trading
Work to build 25 new affordable homes in Fife has been stopped after the developer went into liquidation.
Glenesk Homes Ltd, which had been appointed by Fife Council to deliver the properties in Kinghorn’s Burntisland Road, announced the news last week.
A total of 25 two-bedroom flats are planned in the town which Fife Council says will be available for social rent. All work has stopped on the £5million development which was well underway.
The company appointed a provisional liquidator on June 4 and ceased trading that same day.
A total of 25 two-bedroom flats are planned in Kinghorn which Fife Council says will be available for social rent.
Fife Council leader David Ross is due to speak on the situation at Thursday’s full council meeting
A statement in the leader’s report confirmed the liquidation had resulted in the “immediate cessation of all construction activity on site and has introduced a number of operational, financial and programme risks to the project.”
John Mills, Fife Council’s head of housing, said: “We are aware that Glenesk Homes Ltd, the contractor delivering the affordable housing development at Burntisland Road in Kinghorn, has entered liquidation.
“Our immediate priority is to ensure the site is safe and secure and to protect the work already completed.
“We are taking the necessary contractual steps to assume control of the site and are working closely with our legal, procurement and technical teams to manage the situation.
“At this early stage, it is too soon to confirm the full impact on costs or timescales. However, we recognise the importance of this development in providing much-needed affordable homes and are progressing a structured approach to assess the position and identify the best way to complete the project.
“We will provide further updates as more information becomes available.
“In the meantime, any subcontractors or suppliers seeking information, payment, or recovery of materials should engage directly with the appointed Liquidator.
“Any enquiries should be directed to Michelle Waugh of BTG Begbies Traynor at [email protected] or 0141 222 2230.”