Originally designed to deliver 15 affordable homes, the project has encountered significant challenges since construction began in 2019. These include the liquidation of the appointed contractor in 2022 and rising material and construction costs, exacerbated by the aftermath of the pandemic.

After conducting a comprehensive review, the Association has now determined that the estimated cost to complete the development, including the funds already spent, would exceed £6 million. As a result, it said the development is financially unviable to progress and the strategic decision to halt delivery will safeguard the Association’s long-term financial stability and ensure the responsible management of its resources.

While the Strone Farm site will not be developed as initially planned, Oak Tree Housing Association is exploring alternative options for repurposing the site. In the short term, the existing structures on the site will be demolished, and green space will be created for the benefit of the local community.

Sean Connor, chief executive Officer at Oak Tree Housing Association, said: “This is an incredibly difficult decision, but one that we believe is necessary to protect the interests of our tenants across the Inverclyde region. We are proud to manage more than 1,900 properties and it’s vital that we operate a sustainable business to continue offering much-needed affordable homes.

“This is an exceptionally rare situation, and it is the first time in Oak Tree Housing Association’s 23-year history that we have stepped away from a planned development. I am truly disappointed that the development cannot progress as originally proposed however we are confident that our partners and the local community will agree that the increased spend associated with completing the site is not financially viable.

“Our commitment to providing affordable housing remains unwavering, and we will actively pursue suitable alternative developments.”

Sandra McMenamin, chair of Oak Tree Housing Association, said: “We have remained committed to doing everything we can to futureproof the Strone Farm site and the delivery of new homes. Unfortunately, the significant increase in costs over time has made it unfeasible to continue. This is the right decision to protect our existing tenants and ensure that the housing association’s investment achieves maximum impact.”