Plans to create more than 80 new homes at an abandoned office complex have been scrapped – as the site hits the market for £4 million.

Planning permission was granted earlier this year to transform the former Saga building at Cheriton Parc, on the outskirts of Folkestone, into a total of 86 homes.

The existing four-storey building was to be converted into 31 flats, while 36 houses and 19 further flats were to be built on what is currently the car park.

But property developer Oliver Davis has confirmed he will no longer take on the project, despite telling KentOnline his firm was “excited” to start the job regardless of financial concerns when the bid was approved in February.

He also said work was expected to commence this year, adding: “We are excited to bring the site forward and deliver much-needed housing to the Folkestone and Hythe area.”

The vacant, 4.28 acre-site is still owned by travel-firm Saga, which moved out when it adopted a working from home set up for its workers.

Now estate agent Sibley Pares has been tasked with flogging the complex for about £4 million – a sale which would come with fully approved plans for the redevelopment.

Both Saga and Oliver Davis declined to comment further, though Mr Davis spoke earlier this month about how the housing market “isn’t particularly strong”.

It was the leading factor in another of his schemes – the restoration of the former East Hill flour mill in Ashford – having plans for new homes ditched in favour of commercial space.

News of the development being indefinitely delayed will certainly be welcomed by critics of the proposals, who felt the strain on the road network and healthcare services would be too much to take.

Commenting on the original plans on Folkestone and Hythe District Council’s (FHDC) planning portal, resident Luke Stephens said "the current infrastructure isn't able to cope".

"GP waiting times are long, local hospitals are under pressure, crime is on the rise," he added.

"Congestion around Tesco and the railway bridge is beyond a joke."

Kent County Council’s highways department also objected to the scheme, describing the access roads as “too narrow” and slamming the 21 visitor spaces as an “unacceptable” number.

Despite the opposition, the plans were approved by FHDC councillors with planning officers calling it “a valuable contribution to the council’s housing supply”.

Saga, which until last year had its headquarters in Sandgate, drastically reduced its office space after the pandemic saw it shed jobs and switch to working from home.

Prior to life as an office for the over-50s travel and insurance giant, the Cheriton Parc site was built to serve the Channel Tunnel.