Work on a stalled housing development in Castletown could be set to resume.

Construction at The Meadows has been on hold for more than two years following a dispute between developer Haven Homes and investors.

A number of properties remain unfinished, while work on some plots has yet to begin.

However, Haven Homes director Dave Lewis claims the issues that had delayed the scheme have now been resolved sufficiently for construction to restart.

He said: ‘Haven Homes is very pleased to announce that matters previously hindering the progression of The Meadows development in Castletown have now been resolved sufficiently to allow the development to recommence.

‘We would like to take this opportunity to offer our sincere apologies to those affected by delays to the completion of the development, including existing homeowners, and to thank colleagues, suppliers, friends and associates who have remained resolute throughout very difficult trading conditions over the last 24 months.

‘We are excited to be able to progress The Meadows development to completion. We look forward to offering the remaining available family homes on the open market in the near future and to bringing forward other exciting developments in the south of the island.’

A High Court claim seeking to wind up Haven Homes was withdrawn by consent, subject to resolution of the dispute, in an order dated July 31 last year.

The winding-up petition had been brought by Castletown builders' merchant J. Qualtrough & Co, John Qualtrough and Ballasalla-based investment company Sherwood Ltd, who claimed they were owed more than £5 million between them.

They argued it would be ‘just and equitable’ for Haven Homes to be wound up, alleging the company was unable to pay its debts as they fell due - a claim strongly denied by the developer.