Credit crunch 'hits regeneration schemes'

Two regeneration schemes in the south-east of England may have to be delayed because of the effects of the current economic turmoil.

Basildon and Wickford town centres may not get the proposed £1.2 billion improvement after local councils struggled to win partners for the projects, according to Property Week.

Developers left on the shortlist for the Basildon project are understood to include British Land, Lend Lease and Barratt.

Ian Butt, development project director for the regeneration of Basildon, told the news provider: "These are hard times for the property sector and we have had to acknowledge that in our regeneration projects."

Councillor Stephen Horgan, cabinet member for regeneration and green issues, added that the credit crunch has meant that securing the best deal for the residents has become a lengthier process.

Earlier in the week, the government announced that it was having to delve into contingency funds for the London 2012 Olympic Village as contractors have struggled to raise cash following the global financial crisis.