A £3.8M scheme to transform a neglected area of Ellesmere Port into a thriving focal point is well under way.

In November the collapse of building firm Rok meant work on the site, at the junction of Wolverham Road and Milton Road, ground to a halt.

But within weeks building work was back under way when another builder came on board.

Now the first phase of development is almost complete at Muir Group Housing’s development of affordable homes on land next to the roundabout.

The scheme, designed by Croft Goode Architects, involves building housing on three areas of land, after the demolition of post-war flats. Croft Goode has also drawn up plans to give a facelift to a three-storey block of maisonettes and shops built in 1951.

Work is nearly complete on three three-bedroomed houses and four two-bedroomed flats on one area of the land.

Another area of land will accommodate 10 three-bedroomed houses and the third segment will comprise six three-bedroomed houses.

Designed to meet a Government threshold for sustainable homes, the properties will generate 25% less carbon than is allowed under current building regulations.

Situated 500 yards from Ellesmere Port town centre, the site is also about half a mile from Cheshire Oaks.

The refurbishment programme also includes 10 renovated maisonettes, improvements to shop fronts and public spaces along Wolverham Road and at the back of the retail units.

The whole development will benefit from more than £2m of investment from the Homes and Communities Agency (HCA).

David Croft, director of Croft Goode Architects, said: “The undeveloped land had a rundown appearance and, when finished, the project will significantly improve the area. Public space in front of the shops will also be upgraded to provide a pleasant environment for residents and businesses.

“The scheme has been carefully considered in consultation with residents and other stakeholders. It will provide a good standard of accommodation in a sustainable development that will have a positive impact on the regeneration of the area.”

David Robinson, director of development at Muir Group Housing, said: “This is a distinctive development that will enhance the roundabout site as a focal point in the wider area and provide new affordable homes.

“Securing this development has been a long process and is testament to strong partnership work between the council, ourselves and the Homes and Communities Agency to provide new affordable housing and help create strong local communities.”

Deborah McLaughlin executive director North West at the HCA, added: “There is a real local need for modern, affordable housing so I am pleased that our support is helping to address this issue.”

Cllr Herbert Manley, Cheshire West and Chester Council’s executive member for prosperity, said: “We work closely with housing associations and private developers to make affordable homes available throughout the borough. In 2010/11 we delivered more than 300 affordable homes and are on target to deliver more than 300 new affordable homes during 2011/12.”