The Municipal Buildings in Gillingham have been sold for £1million less than the council was expecting.

The news has been kept quiet at Medway Council’s Gun Wharf headquarters where officers blame the collapsing property market.

The sale of the valuable Priestfields site in Rochester has fallen through, the second major sale to do so, after the buyer cut his offer price and then pulled out completely.

The sale of the Civic Centre in Strood, probably the prime development site in Medway, has also been put on hold.

It means the council is now borrowing £10million to fund major capital schemes.

In a private briefing note, seen by the Medway Messenger, members of the business support committee were told that a halt had been called to sales.

The vacant Municipal Buildings were sold for £2million. Medway Council had hoped to raise £3million.