Plans for a development of shared ownership and council housing in Oxford has been shelved through a lack of funding.

Rising construction costs, supply chain issues and shortages of both labour and materials have caused a £4.7 million funding gap for the the city council’s Underhill Circus proposals at Barton, which include 42 homes along with improvements to shops, roads and public spaces.

The scheme had already suffered a blow when a £2.8m bid for levelling-up funds was refused by the Government. It was also opposed by a number of nearby residents.

Cllr Diko Walcott, cabinet member for affordable housing, housing security and housing the homeless, said: “In line with earlier commitments we have spent considerable time and effort looking at what is possible in Underhill Circus.

“However, a rapid rise in building costs in the last 12 months and a lack of external funding opportunities mean we now face an estimated £4.7m fund gap which the council cannot afford to plug, given the challenging financial pressures we are facing.

“As a result, we’ve taken the difficult decision to shelve our plans for the redevelopment of Underhill Circus as they are not financially viable in the current climate.”

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