A construction company behind a 40 home development in York has gone into administration.

Leeds-based Camstead Homes have appointed Interpath as its administrators on November 19.

Camstead Homes is currently working on the 40-home Blackberry Walk development in Derwenthorpe, which the Joseph Rowntree Housing Trust (JRHT) says is not yet finished. 

Thirty-one of the energy efficient homes in Derwenthorpe were earmarked for private sale, with the remaining nine to be reserved for social rent or shared ownership, organised by the JRHT.

"Like many companies operating across the construction sector, Camstead Homes had experienced sustained trading difficulties over 2024 due to various economic pressures," administrators Interpath said.

"While the directors sought to explore options to address these issues, unfortunately a solvent solution could not be found and the difficult decision was taken to seek the appointment of administrators."

The JRHT told The Press: "We are deeply disappointed to share that Camstead Homes, the contractor responsible for building the final homes at Derwenthorpe, has entered administration.

"We understand that this news may be concerning to residents, colleagues and other stakeholders.

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"Please be assured that we are actively working to understand the situation and its potential implications. Our priority is to explore the best possible way forward and minimise disruption for everyone involved.

"We are committed to keeping both residents and colleagues informed as we make progress and will provide updates as soon as more information becomes available."

James Clark, managing director at Interpath and joint administrator, added: "2024 has been another challenging year for the building and construction industry, with housebuilders continuing to battle with the impact of rising raw material costs, wafer-thin margins and the impact of high interest rates and rising mortgage costs on consumers.

"While the Government’s planning reforms have given hope to many across the industry, unfortunately, the trading difficulties encountered by Camstead Homes proved too challenging to overcome."

Mr Clark continued: "We appreciate news of the administration will cause a great deal of concern for those homeowners and residents of sites where development work remains underway. Our immediate priority is to work with key stakeholders to find alternative solutions which may enable work across these sites to be completed.

"In particular, we will be working with our appointed agents to market the Blackberry Walk site at Derwenthorpe."

Interpath said that 20 members of Camstead Homes staff have been made redundant.

"The joint administrators will be providing them with the support required to make claims from the redundancy payments service," they added.