A deal with David Wilson Homes for the site of the former art college fell through last year as a result of the sharp drop in the housing market.

Now the university is working with Bellway Homes with a view to seeing a redevelopment reach fruition.

It is hoped work can begin next year on a mix of family housing and apartments, clearing the site with the exception of the old Bluecoats School, which is a listed building and due to be converted into apartments.

About 90 homes were originally planned for Psalter Lane, and a similar layout is being adopted by Bellway, albeit with more family housing and fewer apartments.

Initial proposals were well received at a meeting with nearby residents, said Alex Pettifer, Hallam's Director of Estates.

"Bellway have come in with a set of proposals which have been adjusted to meet the planners' requirements," he said. "We are in the process of negotiating with them on the arrangements for the site.

"Inevitably there is a tension between what residents want and what developers need but I have to say that Bellway's approach so far has been commendable."

Mr Pettifer said the university had to live with the consequences of its decisions, and would always take an active interest in overcoming any problems, and this was the case at Psalter Lane.

"It would always be associated with us if we got it wrong, so we are trying to make sure we get it right, trying to meet people's concerns, if they have them."

Hallam hopes to resolve details by the end of the year, leading to a new planning application in line with guidelines already set by the council.

Mr Pettifer said redevelopment would be good for Sheffield as well as the university. "It is a prime residential site and to have developers on it in 2010 is a good sign for the city."

The Psalter Lane arts campus, dating from the 1940s, has been empty since students and staff relocated last year to the £25m Faculty of Arts, Computing Engineering and Science in Furnival Street, part of Hallam's consolidation in the city centre.

BUY ONLINE: The Sheffield Telegraph and Property Guide are now out every Thursday. To sign up on line click here.



MORE:
Local News
Local Sport
Arts Guide
Community News
Listings Guide
Restaurant Guide
Letters