A new developer will take on a major 500-home riverside development in Southampton after the initial firm delivering the project went into administration.

Southampton City Council entered into an agreement with Inland Homes for the Chapel Riverside scheme in 2016.

While the first three phases of the £100 million redevelopment have largely been completed, work on the council-owned site halted last year, with Inland Homes entering administration.

A marketing process was carried out by administrators and a suitable new developer, which has not been named, was identified for the scheme north of the Itchen Bridge.

Members of Southampton City Council’s cabinet signed off on replacing Inland Homes in the development agreement at a meeting on Tuesday, June 25.

This transfer to a new partner is a process called ‘novation’.

Council deputy leader Cllr Simon Letts said: “The developer has gone into receivership and we are looking to move the development on.

“We are the landowner there and therefore that is our interest in this.”

Work already completed on the project has seen 204 residential flats delivered, with two commercial units, a new river wall and riverside walk.

The only outstanding element of phase three is to complete a new underground stormwater storage tank and the demolition of three existing above-ground tanks.

Planning permission for phases four and five features 316 flats, commercial spaces, the rest of the riverside walkway and a new public square.

Completing the storage tanks must take place before the rest of the site can be developed.

Cllr Letts added: “This is an important riverside site for us.

“The key political elements of it are to get houses built in the city, which we are always in favour of, in terms of driving our own economic development and giving people decent places to live and also to open up a section of the waterfront to public access.

“It has long been the case that Southampton is a city by the water where you can hardly get to the water and this development, along with others in the area, will allow access to the waterfront by the wider citizenship and that principle is important to us being a waterside city.”