NO work will be started on a controversial development until mortgage market conditions improve.

Just two months ago, Persimmon Homes began felling trees as it started on the construction of 117 properties off Cowdray Avenue, Colchester.

The company today confirmed workers had been pulled off the site and would not return for the forseeable future.

Essex director Paul Gibbs said: "During the current economic climate, it is prudent business practice to regularly review all aspects of our operations on a region-by-region basis.

"In line with current market conditions, our proposed Riverside Quarter development won't commence until the mortgage market improves."

The hold-up to the development plan was welcomed by a residents' association on the nearby Riverside estate, which campaigned against it before it won planning permission.

Residents' association chairman Mike Titman said: "It is just a postponement, but I am glad they are not building."

Meanwhile, Barratt Eastern Counties is continuing its development at Colne View.

Keith Parrett, managing director at Barratt Eastern Counties, said: "We are in the final phases of building homes at Colne View and have no plans to curtail our work on this development.

"In fact, we have experienced a large measure of success with our new iPads at Colne View."