Planning permission was granted for the homes last year
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A regeneration project in Manchester has been scrapped because of concerns over building close to chemical plants.
The work centred on the Eccleshall Street area of Clayton in the east of the city, where 407 new homes were planned alongside the Ashton Canal.
New East Manchester (NEM) and Manchester City Council have withdrawn from the project after new advice from the Health and Safety Executive (HSE).
Residents from 150 homes have already moved to accommodate the plans.
The end to the plans follows new advice from the HSE about constructing new homes near chemical-producing plants.
The estate, off Ashton New Road, is next to the Air Products chemical factory and there has been a chemical factory on that site for more than a century.
Alternative options are now to looked at for the site
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Alternative options are now to be looked at, which come within the guidance.
The compulsory purchase order (CPO) for the homes was based on plans approved in 2006 to build 407 new homes including 211 two, three, and four bedroom houses and 196 apartments.
Manchester City Council said that 86 of the existing 234 properties are still occupied and that all affected residents would be notified personally.
Tom Russell, chief executive for New East Manchester, said: "Withdrawal from the CPO is of course a difficult and disappointing decision but it would be morally wrong for us, as a public authority, not to take on board the Health and Safety Executive's advice and progress the scheme."
The Clayton plans are part of a wider ongoing scheme to revitalise east Manchester.
The completed City of Manchester stadium, the development of Gorton monastery and the super-casino plans are among the major projects.
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