WORK has begun on a £5 million flats development on the site of two former nightclubs in Southampton.

Forty-four apartments will be built on the site of the former New York, New York nightclub and McClusky’s bar.

It is the first development to begin in a new market district which council chiefs hope will eventually span across Holyrood, Queen’s Park and Old Town.

The fruit and vegetable market project is one of seven schemes which council chiefs have identified as being vital to their city centre master plan.

The plan, which was unveiled earlier this year, is a blueprint of how they want the city to develop over the next 17 years, and will bring in £2.6 billion of investment and 23,000 jobs if it comes to fruition.

Now construction has begun on the apartment building in Queensway which. The flats will comprise 32 homes for affordable rent and 12 for shared ownership.

The homes, which will be operated by Raglan Housing, will include seven four-storey, four-bedroom town houses and a ground floor retail unit, and are being built by PMC Construction Ltd.

Construction work is expected to be completed within two years, and Labour city council chiefs hope the development will act as a catalyst for fresh interest in investing in the new market district.

Warwick Payne, the council’s housing czar, said: “I’m delighted that Raglan’s Queensway project will kick start the regeneration of a key site which is part of the council’s long term masterplan for the city centre.

“In addition with more than 14,000 people on Southampton’s social housing waiting list, there will be a clear demand for these 44 new homes.

“Both McClusky’s and New York, New York were popular in their day, but have been closed for a while now and when there is a site in Southampton where not a lot is happening the council is very keen to get things moving.”

Raglan’s assistant director of development, Jonathan Layzell, said: “We’re delighted to be starting the construction of these much-needed homes which will not only help meet the shortage of affordable housing for local people in the city centre but create a thriving community which will play a vital role in the regeneration of Southampton’s old town.

“We also hope that our shared ownership homes will give first-time buyers and families who are unable to afford high city property prices an opportunity to get their foot on the property ladder and own a home of their own.”