COMPLETION of a new homeless hostel in central York is set to be delayed, due to problems with the building's foundations.

The £1.8 million Peasholme Centre project at Fishergate is not now expected to be completed until the end of August, three weeks later than anticipated.

Two concrete structures at the site were found to be inadequate in inspections last week. City of York Council and contractors have now arranged for further investigations.

A council spokeswoman said: "Two of the concrete piles have failed initial tests. Further investigations are ongoing to appraise the extent of the problem and the structural engineer and the piling contractor are working together to provide an alternative solution in the affected areas of the work."

She said: "The problems with piling will case a delay of no more than around three weeks, which means that the project will be completed by the end of August."

The Peasholme Centre is being relocated from Peasholme Green, to make way for the council's new £40 million headquarters at Hungate.

The new site, which formerly hosted the Fishergate Centre, was chosen from a range of possible locations, but the move has been dogged by controversy.

Local councillor Dave Taylor and Fishergate planning panel clerk Roger Moore called on the Government to quash planning permission, in an attempt to protect the Fishergate Centre, which housed small businesses.

Planning consent had earlier been granted last April, after a stormy meeting in which one objector was told he could not speak, and several others walked out in disgust.

The new building itself has been described by English Heritage as "very disappointing", while another objector labelled it an "appalling monstrosity". Local residents have also claimed it will lead to an upsurge in crime and antisocial behaviour in the area.

The Peasholme Centre offers support and accommodation to homeless people as part of the resettlement process. People living at the centre are required to complete a planned support programme and will have been referred there by other agencies working with them, or from other places such as York's Arc Light Centre.

The relocation is costing £1.8 million, of which £1.5 million is on the construction of the new hostel.