Demolition work for the multi-million-pound transformation of the Debenhams site in Southampton is set to begin in the new year – but financial contributions from the developer will be delayed.

The former department store building in Queensway will make way for a 607-home scheme.

National Regional Property Group secured planning approval for the major redevelopment from Southampton City Council two years ago.

However, permission was given by council officers this month for the developer to delay paying a contribution to help fund infrastructure, facilities and services.

READ MORE: 17-storey tower at Debenhams 'will inject' 1,000 people into city centre

Commencing demolition work will no longer trigger community infrastructure levy (CIL) payments.

This came after an application from the developer in late November for a new CIL phasing planning condition which separated the demolition phase from the rest of the project.

The CIL contribution totalled £2.77 million according to a report that was presented to members of the planning and rights of way panel who determined the overall scheme in September 2022.

READ MORE: A look back at Debenhams in Southampton as all branches close

Cabinet member for economic development Cllr Sarah Bogle said: “The development is liable for the community infrastructure levy, the charge for which was calculated alongside the original planning consent.

“The levy will become due after the demolition phase, which is currently scheduled to start in early January 2025, when construction of the development technically commences.”

The Debenhams site at Queens Buildings has been vacant since the national retailer ceased trading in 2020.

The build-to-rent scheme features 598 apartments in a mix of one, two and three-bed homes, nine townhouses and a 108-space car park.

Around 1,000 people will be housed across a 17-storey and two seven-storey blocks.

Cllr Bogle said: “The Queens Buildings site is a key renaissance opportunity for the regeneration of the city centre, occupying a prominent location overlooking Hoglands Park.

“With an existing consent, granted in 2022, for a landmark residentially led, mixed use development, the Queens Buildings site will help to meet housing need and deliver new public space to complement the under construction Bargate Quarter across Queensway, and neighbouring, successful Gatehouse Apartments scheme.”

National Regional Property Group has been approached for comment.