CONSTRUCTION of the £150 million Silver Hill scheme could start by the end of the year, according to its developer.

TH Real Estate, formerly known as Henderson, has confirmed its major redevelopment in Winchester city centre should be underway within months if civic chiefs accept that it is financially viable.

Winchester City Council is legally obliged to decide whether the firm, which altered its name on Monday following a takeover deal, will make enough money on the project of shops and homes.

But the parties disagree over what evidence has been submitted, according to council leader Stephen Godfrey.

"We have indicated to our partners that their submissions needed further clarification," he told the Chronicle.

Asked about the changing viability of its revived proposals, a TH Real Estate spokesman said: "Viability changes with market conditions and the fact that the 2009 scheme has significantly more residential than the 2014 scheme, means that it has been particularly sensitive to such movement."

Once the council has the information it needs, officers have 15 working days to approve or reject Henderson's figures. If they are granted, along with details on funding and housing partners, the scheme will go 'unconditional', removing the final block on construction.

"We would expect to be on site in some shape or form by the end of the year," a TH Real Estate spokesman said.

Asked whether the developer could apply for changes after the 2009 scheme has gone ahead, she added: "We will always look to refine and improve a scheme during the process of its detailed design where the opportunity arises. These would always be within what is lawfully entitled and permitted under the provisions of the agreement."

Monday marked the expiry of a 'long-stop agreement' between the parties, meaning either can walk away provided they have fulfilled their side of the bargain.

As reported in last week's Chronicle, cabinet rejected the chance to extend this agreement after what it called an offer from the developer.

The TH Real Estate spokesman added: "It was Winchester City Council who requested whether we would agree to it, as they wished to delay their decision to approve our request to go unconditional under the Development Agreement until after the Claer Lloyd-Jones report. In the end, they decided not to, which we are pleased with as it allows us to move on without further delay."

Anti-Silver Hill campaigner Kim Gottlieb has launched fresh calls to abandon TH Real Estate.

“It’s at critical status," hetold the Chronicle. "The council needs to make a bold decision. Nobody likes the 2009 scheme – even Henderson themselves have said it’s not their preferred scheme, so why should we let it just happen because we haven’t got the wit and the originality to think it through a bit more carefully?

He added: “We’re not shy of resorting to further legal action but I very much hope sense will prevail and people realise they have the ability and power to do things without this legal nonsense.”

Silver Hill will next be discussed at Council on July 15.