By Pamela McGowan

Last updated at 16:41, Friday, 21 November 2008

A Cumbrian property company is hoping to beat the credit crunch with the £2 million development of a former Carlisle hotel.

Neil Waddington, centre, of Prospect GB Limited, accepts the keys for the new Newfield Grange housing development from Andrew Clode, Castellum Limited, and Adrian Hogarth, left of Cumbrian Properties

The former Newfield Grange Hotel at Kingstown has been transformed into 28 apartments.

Completed last week, the flats have been designed and built by Dalston-based construction firm Castellum Ltd after winning a £2 million contract with housing firm Prospect (GB).

The majority will be for sale, with prices starting at £94,950 for a one-bed flat, while six have been set aside for rental.

But although some developers have struggled to shift new-build properties in the current climate, the people behind this scheme believe it has something different to offer.

Andy Clode, managing director of Castellum Ltd, said the style is a combination of traditional and modern.

He said each of the one, two and three-bedroom properties is unique so will appeal to a wider market.

Adrian Hogarth, of Cumbrian Properties, which is marketing the flats, added that they are realistically priced and have been designed to be affordable to first time buyers.

He said even though they were only finished last week, people have already expressed an interest and they have had four reservations so far.

There is also a shared equity option, meaning the buyer would own 75 per cent of the property for the first 10 years, after which they would pay off the remaining total.

“They are very stylish apartments but have a cottage feel, so they are more like houses on one level than traditional flats,” said Mr Hogarth.

“They are very high-quality and there’s a mixture, so I think they’ll appeal to everyone from first time buyers to those reaching retirement age. It’s a great location north of the river and they have a nice view across the fields to Houghton.

“You can still sell property in this market but it has to be priced accordingly. The developer is very realistic.”

A show home will open at the site in early December.

As for the current climate, Mr Clode believes things are starting to pick up again.

He said that as most of his firm’s work comes from the public sector, they are in a better position than most to come through the recession.

But at the same time, having now completed their first full residential design and build scheme at Newfield Grange, he would be keen to get involved in similar future schemes.

“Anyone who relies on the housing market appears to be struggling right now but we are fortunate that we get a lot of public sector and commercial work, mainly across the border in southern Scotland.

“I can’t say I haven’t worried about it because eventually it will hit everyone if it lasts long enough, but I really feel that there’s a bit of confidence starting to come back into the housing market already.

“This time of year is always quiet for the construction industry but we’ve got some sizeable contracts starting in the new year and hopefully will be doing more with Prospect. They’ve been a good client.”

First published at 05:15, Friday, 21 November 2008
Published by http://www.cumberlandnews.co.uk