WORK on transforming the former Fryerns School site into 650 homes should begin next month.

The first phase of the £250million Craylands redevelopment is possible now Basildon Council has signed over all the estate's homes, garages and land assets to Swan Housing.

The buildings and land, worth £15million, have gone to Swan at no cost and will act as the council's contribution to the regeneration.

However, the handover coincided with warnings the ten-year project could face delays because of the current house price lull.

Tony Ball, councillor in charge of housing development, said: "Allowing Swan the estate at no cost recognises the council and community are putting in a very valuable asset to make this scheme viable.

"We expect work on developing the Fryerns site to start next month. Some of the homeowners have already been bought out."

Mr Ball said all four phases of the scheme could now take up to 15 years to complete, because of the economic slowdown, but vowed it would still be completed.

He said: "Who knows what might happen with the housing market.

"Assumptions have had to be made on the future housing market, because profits will be reinvested back into the scheme.

"The calculations were made some time ago, so if there is a continued downturn, it could affect the speed of progress."

Dave Poulter, major projects director for Swan Housing said: "Funding has now been secured and work can start in ernest.

"By the end of the month Swan will have started on site, initially on the road with the houses to follow.

"We expect the first homes to be completed in Spring 2009."