A SUMMER start is on the cards for building work on the first homes at the former Llanwern steelworks site, a regeneration company boss confirmed yesterday.

Recession and an accompanying collapse in the housing market in 2008 put the brakes on ambitious £1 billion plans for the 600-acre site's transformation.

But last year St Modwen, the company behind the plan, announced that the scheme was back on track, and now its regional director Rupert Joseland has told the Argus that Persimmon Homes is preparing to begin work on the first 311 homes, on a site where 4,000 could be built during the next 20 years.

"Persimmon is to commence 311 homes this summer at Glan Llyn (the name given to the first housing site at Llanwern)," said Mr Joseland.

"A planning application on details such as the elevation and layouts of the houses is going in this week."

St Modwen yesterday announced pre-tax profits of £37.5m for the second half of 2010, following a £26.7m pre-tax profit for the first half. These positive results have followed 2009 losses of almost £100m.

Mr Joseland said the delay at Llanwern had been frustrating but he added that "seeing properties going up will be a real boost for everybody."

Despite a difficult market for the last two or three years, and continuing economic uncertainty, work has continued on the Llanwern site, in the form of what Mr Joseland called "remediation and reclamation."

"It is a huge site and we have been able to keep going with work to prepare it for development. We are quite far ahead with that," he said.

Business and retail development is also a key part of the overall Llanwern regeneration and Mr Joseland said: "We are also having conversations with commercial occupiers. We would like to bring some jobs to the site too."