WORK to build more than 500 new homes on the former site of Whiteheads steelworks in Newport has begun.

Lovell, Tirion Homes and Melin Homes are leading the project, with additional support from Welsh Government.

The £85 million development is said to by Lovell to be one of the largest in Wales and is called Royal Victoria Court.

528 properties, including one and two-bedroom apartments and two, three and four-bedroom homes will be located on the site.

264 homes will be available for open market sale through Lovell Homes and 234 affordable homes for rent with Tirion Homes, alongside an additional 30 properties for low-cost home ownership through Melin Homes.

Work is expected to be completed by 2025, but some open market homes will be up for sale this spring.

James Duffett, regional managing director at Lovell, said: "We are thrilled to have officially commenced work on our Royal Victoria Court development in Newport, and to have celebrated this occasion with our partners.

"This ground breaking marks the start of an incredible project for Lovell.

"We’re very proud to be delivering much need housing for local people and transforming this brownfield site into a thriving new community.

"Following our signing of the Placemaking Wales Charter, we are committed to providing Newport with homes that people can feel proud to call theirs.

“We’re delighted to be working with our long-standing partners Tirion, Melin and Welsh Government to deliver this development.

"Royal Victoria Court is an example of how partnership working can benefit communities and the local economy, whilst creating numerous jobs and training opportunities."

Whiteheads first opened in Newport in the 1920s before eventually being closed in 2005 and eventually demolished.

The site is in the heart of Newport and is close to the university and Royal Gwent Hospital.

Also nearby are a variety of pubs, cafes, shops, cinemas, theatres and supermarkets.

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John Lovell, chairman of Tirion Developments, said: "As lead developer, Tirion would like to echo James’ comments and thank all our partners and collaborators for their help in bringing this unique project to site.

"The achievement of 50 per cent affordable homes, on a contaminated brownfield site, without the need for substantial grant assistance, should not be underestimated.

"Most importantly, the template we have created may be followed to deliver many more similar housing projects in Wales.

"Tirion is a dynamic, not for profit charitable company.

"Our next objective is to minimise living costs by utilizing self-generated, low carbon energy. This is particularly important at this difficult time.

"Particular credit must be given to Welsh Government for creating the initiatives and ideas that have led to this success; and facilitating solutions along the way.

"Particular thanks also to Lovell who have stepped up and contributed their own investment, skills and partnering approach."

The development is said to create more than 850 new jobs, including 40 apprenticeship placements for local people.

Councillor Jane Mudd, leader of Newport City Council, said: "The council welcomes new investment and development in the city.

"I look forward to seeing this former industrial brownfield site being transformed into new homes to meet the housing needs of Newport’s growing population."