New homes destined for an abandoned railway works site - where multimillion-pound film studios are also due to be built - have been delayed.

The ambitious Newtown Works project in Ashford was approved in 2020, and will see derelict land and buildings previously used by the railway transformed into over 7000 sq ft of studio space.

In total, four film studios are proposed, as well as an 18-storey hotel, 300 flats, commercial units, a rooftop restaurant and a nearly 400-space multi-storey car park.

Ashford International Development Company – 65% owned by Ashford Borough Council and 35% by developers Quinn Estates – is behind the plans and are "engaged with a leading global studio operator" for the site.

However, preparatory works for the 300 homes are set to come to a halt, as nutrient neutrality rules have impacted construction.

Cllr Simon Betty (Ash Ind) told KentOnline that minor modifications to the plans for the homes mean they are now caught by nutrient neutrality rules which were introduced in July 2020.

Guidance from Natural England tells 62 councils across the country that residential developments should not be allowed unless housebuilders can show that their schemes won’t affect pollution or nutrient levels in local waterways.

Across east Kent, thousands of homes have previously been delayed due to nutrient neutrality issues from the Stodmarsh Nature Reserve, near Canterbury.

Over the summer, the government attempted to allow local authorities to ignore this guidance in some circumstances, but the change was defeated in the House of Lords.

Cllr Betty added: “It means that until the nutrient neutrality issue is sorted there is going to be a delay in delivering the residential element.

“The plan was to push ahead with the delivery of the residential element of the scheme, which now, because it requires slight modification, means that we have to pretty much put a halt on any further major works on delivering that scheme.”

The outline planning permission was agreed in April 2020 before being finally signed off in September once Section 106 contributions and legal agreements were completed.

The project is partially being financed through the government’s Levelling-Up Fund, with the first tranche of £14.7m originally meant to be spent by March 2025.

However, due to the nutrient neutrality rules affecting the residential project, ABC’s cabinet voted on October 26 to ask the government for an extension until March 2026.

“We’re now looking at options to use that funding within the timescale but on different parts of the site,” Cllr Betty said.

“It’s extremely frustrating at the moment for all local authorities that are covered by nutrient neutrality rules.

“I think the government have now actually realised that the problem is at their doorstep and not with the local authorities.”

When work can resume on the residential part of the site will depend on if, or when, the government changes nutrient neutrality guidance for councils.

An ABC spokesman said: “Significant progress has been undertaken on enabling works to prepare the site for development including infrastructure works, the completion of the archaeology studies and utility connections.

“Discussions have also progressed with potential studio operators, East Kent College, and residential investors over their interest in occupying the site.

“The next six months will be critical in getting the agreements and contracts in place to enable the start of construction on the film studios to take place next year.

“Although the project is facing the challenge of being caught by nutrient neutrality rules resulting in delay to the delivery of some of the aspects of the scheme, there is evidence that demand for UK studio space is still strong.

“It is therefore important that the council continues to support the delivery of this very important economic project for the borough.”

In cabinet papers, the council points out that according to a recent report by property firm Knight Frank, 2.6 million sq ft of studio space is needed by 2028 for the UK film and TV industry, with £2.4 billion of extra spend in the industry expected.

Although no specific operator has been confirmed, Netflix, Amazon and HBO have all been linked with the scheme.