A FLAGSHIP housing development has been put on hold — leaving residents staring at a mountain of rubble they have labelled ‘Mount Everest’.

Work has ground to a halt on the site of the former Blackburn Royal Infirmary, where 253 new homes were set to be built.

Two months after work- men left the site, developer David Wilson Homes has confirmed it is looking for Government funding to get the project off the ground amid a slump in the property market.

Bosses said they remained committed to the project and had carried out the preparatory work before the scheme was put on hold.

But people living in the area are angry at the pile of debris overshadowing their homes.

The former hospital, which dated back to 1865, has been demolished as part of the project, with just the Edwardian War Memorial building surviving the bulldozers.

It is seen as a key strategic development for Blackburn’s regeneration, situated on a main road into town and next to one of the Housing Market Renewal areas where millions have been spent replacing housing.

Council leader Michael Lee said: “It is on hold at the moment. They are trying to access funding that the government has made available.

“We are attempting to assist them and it’s purely and simply because of the state of the economy.

“Most builders are in the same situation. What they’re building isn’t selling and they’re having to cut down on what they are doing.

“It’s important for the town because it’s on one of the main arterial routes into the town and we are assisting where we can.”

Coun Lee said the town hall would try and put pressure on the developer to reduce the size of the mound of rubble on the site.

Ewood councillor Joe Smith said: “We were certainly expecting there to be housing on there by now.”

His fellow ward councillor Maureen Bateson, who first raised the residents’ concerns, added: “It always was seen as a key site because of its location.

“So it’s obviously disappointing that it’s come to a halt.

“I know the market is difficult at this moment in time, but people have been left with an eyesore and they don’t know for how long.

“Kids have been getting onto the site and using it as a playground.“ People living in Longshaw Lane, next to the building site, echoed her fears.

Jean Swainbank, 74, said: “I have lived here for 45 years and when we first moved in we had a nice view.. All the residents have christened it Mount Everest.

“The main worry is the kids keep sliding down it.”

Barbara Hargreaves, 64, added: “If I look through the window of my living room it is all I can see.

“If they just flattened it things wouldn’t be so bad.”

The development was given planning permission in January 2008 and was expected to take three years to build.

The plans would see 188 one-, two-, three- and four-bedroom homes on infirmary land stretching back to Longshaw Lane.

BRI’s landmark Edwardian War memorial building, overlooking Bolton Road, would be converted into 53 apartments, while the former hospital car park at the corner of Sunny Bank Road and Pritchard Street would be home to 12 apartments and associated car parking.

A spokeswoman for David Wilson Homes North West would not give any indication when the building work might begin or specific details of why the Government funding was needed.

But in a statement, the firm’s planning director Andrew Taylor said: “David Wilson Homes is committed to developing the residential scheme at the Blackburn Royal Infirmary site.

“We are looking to begin building works at the earliest possible opportunity and David Wilson Homes is currently investigating alternative government funding streams which could further assist in bringing forward commencement.

“We appreciate residents concerns with regards to the material stored on site and can provide assurances that all health and safety regulations have been adhered to.”