WORK on building a new footbridge across the River Foss into York’s Hungate site should start later this year, as developers look to resume the £150 million rejuvenation of the area.

The redevelopment of the rundown, ten-acre Hungate site between the Foss and The Stonebow has been stalled over the past year because of the recession and slow-down in the housing market.

Work on building the first 162 homes was completed last summer and the second phase, involving 154 apartments and bar and restaurant commercial units on adjacent land, was originally expected to start in the autumn of 2008. It was then expected to start by late 2009, but work failed to materialise.

But now Hungate (York) Regeneration Ltd says that with good progress on sales of homes in phase one, it is now looking to progress with phase two.

Martina Collins, sales and marketing director for Hungate Urban Neighbourhood, said it was currently consulting with focus groups about the internal layout for the apartments in the second phase.

It would then have a view to beginning marketing the properties off-plan towards the end of this year, with construction to follow in 2011.

She said there were 129 apartments and 33 townhouses in phase one of the scheme. “All the apartments have been sold, but we still have townhouses available for purchase,” she said.

The proposed bridge, which would link the site with Navigation Road and is an integral part of the project, has now been given the provisional go-ahead by the Department for Transport, although anyone disputing the scheme still has six weeks to apply to the High Court to quash it.

Ms Collins said the footbridge, which the developers were providing as part of the scheme, would be a stylish and attractive addition to the neighbourhood.

She said: “We hope to be able to begin construction of it on-site in November.”