THE £7 million regeneration of the Oakley Way and Oakley Close area of Caldicot will enter its second phase in the coming months.

Monmouthshire Housing Association (MHA) and Hale Construction will begin building 37 new homes this spring.

The houses and flats will replace the three blocks of flats built in the 1960s, with tenants previously living in the flats having moved into more suitable homes elsewhere in Caldicot.

The new homes are made up of 21 two-bed houses, five three-bed houses, eight one-bed flats and three two-bed bungalows.

An MHA spokesman said: “The new homes will provide much needed affordable housing in Caldicot and help reduce the significant housing demand in the area. “

Over the last 10 months, MHA has been involved in a programme to rejuvenate the area and six blocks of flats on Oakley Way are undergoing extensive renovation work both inside and out, including new kitchens and bathrooms, electrical works, gas and heating works and external decoration work.

John Keegan, chief executiev of MHA, said: “The area has been transformed and people in Oakley Way now live in the highest possible quality accommodation.

“We are really pleased with how local people have responded to the work we have done so far and look forward to lots of people moving into brand new homes in the very near future.

David Harrhy, manging director of JG Hale Group, added: “We are keen to offer employment opportunities locally and will provide an influx of demand upon the supply chain within Caldicot and surrounding areas.

“With the end users requirements in mind, the dwellings are to be constructed utilising quality materials from sustainable sources which will result in a development that all will be proud of.”