Blackpool Council owed £9.5m after housing developer goes bust but authority vows to complete 51-home project

Blackpool Council has vowed to complete a new housing development of 51 homes in Bispham despite being left £9.5m in debt after the developer went into administration.

The homes were being built on a site between Faraday Way and Ryscar Way by Create Bispham Limited, part of Create Developments, after the council and Create entered into a development agreement in 2023 to redevelop the site.

Create Construction was also behind the plans to build the £8.5m, 131 bedroom Hampton by Hilton hotel in South Shore.

Planning permission was agreed in July 2023.

But by late 2025, the company and its associated contracting entity, Create Developments (Land & Property) Ltd, experienced cash flow constraints and an inability to meet liabilities to suppliers and subcontractors as they fell due.

As a consequence, suppliers ceased delivering materials to site, subcontractors were unwilling to continue works without advance payment and the construction activity on site significantly slowed and ultimately ceased.

In April, Create Bispham Limited had to bring in administrators, with S&W Group being appointed.

Meanwhile, the council made arrangements in November for Ruby Civils Engineering Ltd (“RCE”) to take over construction from Create Bispham, with the Council engaging RCE directly under revised commercial terms and ongoing cost oversight.

Since then, RCE has progressed partially completed plots, delivered new ones, and advanced the development in phases.

Some 20 of the 51 homes have been have completed with another 31 yet to handover. Administrators estimate that it would cost another £5.8m to complete the scheme, which includes 16 affordable homes.

What the council says

Blackpool Council has released a statement about work on the estate, but would not be drawn on financial considerations.

A Blackpool Council spokesperson said: “Building houses at Ryscar Way is key to creating more quality housing for the people of Blackpool.

“We plan to continue the Ryscar Way development not just because of the housing need but for home owners already invested in the site. We will now endeavour to support and assist the completion of the site.”

Create Developments has been controlled by its director and shareholder, Paul Mathison, who has been a director since incorporation and holds a controlling interest in the Company.

In a bid to recover money owned by Blackpool Council, the administrators have endeavoured to try and sell the Create Bispahm’s leasehold interest in the site, but only one bid was received.

That was for the freehold, which the council already owns.

Create Developments was approached for comment.