Crossag Farm in Ballasalla is one of the sites being considered as part of a drive to build more affordable housing in the isle of Man, the government’s newly set up Housing Agency has confirmed.

It has been designated for predominantly residential development since 1982.

But plans to build 257 houses at Crossag Farm were refused planning consent by the Council of Ministers following a public inquiry in 2006.

However, the 13-hectare site remains earmarked for housing - and a replacement primary school - in the Southern Area Plan which was approved by Tynwald in 2013.

Across the road, the Reayrt Mie estate has seen hundreds of new homes built by Dandara - transforming the look of the village and putting further pressure on services and school places.

At a board meeting of the new Housing Agency in January a viability study for Crossag Farm was received.

Members were told that the next steps will involve ‘considering available development options’.

A spokesperson for the Department of Infrastructure said there were currently no detailed plans for Crossag Farm - but any future proposals would be subject to a full public consultation.

He said: ‘The Housing Agency is exploring a range of options for delivering affordable housing across the island.

‘Crossag Farm is one of the sites being considered, and it has the potential to support a mix of housing types - not solely private homes for purchase.

‘As part of understanding community needs, the Agency has engaged with key stakeholders, including the Department of Education, Sport and Culture, who have identified a potential requirement for a new school in the area.’

They added: ‘It is too early to comment on specific numbers or detailed proposals.

‘There are many factors to assess, and the Agency intends to commission further work to better understand the opportunities the site may offer and any impact upon the surrounding area and communities.

‘Any future development proposals will be subject to full public consultation.’

The new housing agency has taken over the DoI’s social housing and has been created to accelerate the construction of affordable homes and improve access to housing.

January’s board meeting heard that schemes had been identified with the potential to deliver around 92 affordable homes ‘and establish a longer-term pipeline’.

One of these schemes is at Ballcubbon, Colby.

Tynwald has approved £5.3m funding for project that will see the construction of 20 two-bedroom properties - seven houses and four apartments for first-time buyers, plus five bungalows and four apartments for public sector rent.

Half the site has previously been developed for affordable housing.

The Southern Area Plan states that the proposed release of government-owned sites at Crossag Farm and Ballacubbon would ‘clearly aid the supply of affordable housing land’.

The Housing Agency board heard that tender issues are being reviewed for Ballacubbon with a ‘change in contracting approach anticipated’.

At the same meeting, the board discussed the ability to acquire property from the Manx Development Corporation.

And it heard work continues to ensure access to suitable housing including upcoming proposals for supported accommodation at Mona Drive, Douglas.