A housing development in a priority-need area of the Isle of Wight has been frozen after the Housing Corporation withdrew funding at the last minute.
The move came as the housing association behind the scheme, Isle of Wight Housing Association, was put under supervision.

Problems with the plans to build 93 social homes on a former scrapyard, backed by more than £2m from the Challenge Fund and roughly £1m from Isle of Wight council, have led to the corporation's intervention.

A spokesperson for the corporation said: "[We are] aware of the difficulties surrounding the development on the Oakfield site. As part of our regulatory work we will be carrying out a review of our financial commitments to the scheme and a decision will be made in consultation with other stakeholders."

Despite delays caused by decontamination, a source at the council said the building work was finally due to begin. He said further delays to the scheme would be a "major blow" to a council facing a growing housing shortage.

The Housing Corporation's appointees to the association's board included: Julie Barnett, development director of Signpost Housing Group; David Shelton, resources director of Testway Housing; and Christopher Carlisle, chair of Martlet Homes.

Isle of Wight Housing Association declined to comment.