THE future of a partly-built new housing estate in Minehead is in the balance after the developer went bust and called in administrators.

London-based Stratton Land Ltd, which has offices in Tiverton, has been building the Exmoor Gate housing development on the A39 Topcoat Road.

But it ran into ‘viability issues’ with the 69-home site and recently successfully asked Somerset Council for a £300,000 cut in a financial contribution it had to make to community facilities in Minehead as part of its planning permission.

The company argued it unexpectedly had to spend money on removing topsoil from the development site to be stored on land at the former Wansborough Paper Mill, in Watchet.

Now, the firm has gone into administration, meaning the remaining Minehead homes could be significantly delayed or not built at all.

Any new developer purchasing the site would continue to be liable for completing the new estate as well as making the agreed community facilities contribution.

A Somerset Council spokesman said: “We are working with all concerned parties to ensure the development moves forward.

“Section 106 agreement contributions are tied to the land, so will be honoured as part of any new arrangements.”

West Somerset MP Rachel Gilmour said she was saddened by the situation and wanted the Government to make it easier and more financially viable to provide affordable homes in rural areas.

Mrs Gilmour said: “Stratton Land entering administration is a disappointing outcome for many, especially those hoping for affordable housing in their area.

“Providing truly affordable housing should be a clear priority in this current housing climate, and anybody exiting the market who would otherwise be providing that, is a shame.

“The Government needs to ensure genuine affordable homes are available in local communities, and it should work across the sector to make that a reality.”