Work on a multi-million-pound project set to transform Southampton city centre appears to have stalled.

Nearby shop and restaurant staff have spotted a downturn in activity at the Bargate Quarter in recent weeks.

And now, it has been confirmed that contractor Henry Construction Projects, hired to carry out the works, has gone into administration. Read the full story here.

This comes just days after Henry Construction Projects was fined £234,000 by the Health and Safety Executive after a demolition worker suffered a serious injury after falling from a platform in London in March 2021.

Daily Echo: The Bargate with the construction site at the Bargate Quarter in Southampton

The £132m project around the City Walls and The Bargate is set to bring 519 new homes - a mix of studios, one, two and three-bedroom units - along with 2,515 square metres of ground floor commercial space.

It was hailed as "crucial" for the city and was expected to create 115 jobs and contribute £5.5m to the local economy.

Business owners around the city centre noticed that work on the construction site had paused in the last few weeks.

Daily Echo: The gate to the construction site on Queensway, Southampton

Charlotte Lord is the manager of running shoes and clothes shop, Run Company, on Hanover Buildings which sits adjacent to the construction site.

The 28-year-old told the Echo: “Normally you can hear some work being done which I haven’t heard certainly in the last couple of days.

“I hadn’t actively noticed that it was quieter but looking back, it definitely seems like it has been quieter.”

Daily Echo: Works for the Bargate Quarter scheme have stoppedWorks for the Bargate Quarter scheme have stopped (Image: Newsquest)

Orhan Servincli, 37, owner of restaurant, Artsy Lounge, on Queensway, said: “I haven’t seen anyone [coming in or out of the site] for a good few weeks.

“We used to have cement mixers driving through Queensway and it would sound its horn before driving into the site. There were a lot of them driving past the restaurant and going through the gates.

“That has stopped for a good two to three weeks.”

The Echo understands developer Tellon Capital remains “100 per cent committed to delivering the development”.

Daily Echo: The Bargate Quarter projectThe Bargate Quarter project

Conservative MP for Southampton Itchen, Royston Smith, said: “The Bargate development is one of Southampton’s most important sites.

“Delivering jobs and homes is the number one priority and this development will make a significant contribution to the city’s targets.

“It’s a relief that Tellon remain committed to completing the development despite a very challenging financial backdrop.”

Bargate Quarter was expected to be completed by late 2024 or early 2025.

Once finished, it would be owned and operated by investor Legal & General.

Henry Construction Projects, Legal & General and Southampton City Council have been contacted for comment.