A DERELICT Newport brownfield site which was once home to the Whitehead Steelworks could be set to host hundreds of new homes, a new primary school and a residential care home.

A planning application by Colin Lewis, chief operating officer at Whiteheads Development Company, to transform the 17 hectare site at Mendalgief Road into a residential development was submitted to Newport City Council on June 19.

The plans, which are supported by the Welsh Government, include 498 new homes, a new primary school, and a 50-bed residential care home.

The company hopes the proposed development will deliver a £140 million economic boost to the area.

It could create up to 1,500 jobs in the process, with the first set of houses being built late next year.

The not-for-profit housing development company will make 249 of the homes available at below-market rents.

Under the terms of a £7 million loan from Welsh Government, at least half of the development would need to be affordable housing, rather than being sold on the open market.

The loan will be going directly to the company, a subsidiary of not-for-profit organisation Tai Tirion, which was set up following an initial alliance between Welsh Government and the Principality

Of the proposed social rented properties, there will be 59 flats, 77 two-bedroom homes, 93 three-bedroom homes and 19 four-bedroom homes.

Market housing wise, it is proposed that there will be 58 flats, 76 two-bedroom homes, 95 three-bedroom homes and 19 four-bedroom homes.

It is hoped the first homes could be built by 2016.

Extensive community engagement for the site was undertaken in January 2015, where members of the public were invited to comment on the development’s plans.

The original site in Pill was closed as a steelworks more than 10 years ago.

The new potential site is already allocated for housing in Newport City Council’s Local Development Plan.