A BRICK-laying ceremony has been held to mark the start of work on a £2.2m development of affordable homes to be marketed for young, single Worcester people.

A total of 22 one and two-bedroom apartments, all for rent, are being built by Spa Housing Association, in conjunction with Worcester City Council, in New Street.

"This is a very important housing scheme as it will provide a range of affordable new homes for young people in a prominent city-centre location," said Jeanette Weir, chair of Spa, who performed the ceremony.

The 18 two-bedroom apartments and four one-bedroom apartments are being constructed on the site of the former Labour Club.

"We are delighted to be developing this scheme with the support of Worcester City Council," she added. "It is an excellent example of what can be achieved on a small brownfield site and shows our commitment to providing housing help to young people."

The Government-backed Housing Corporation has helped out Spa Housing Association with funding for the development.

An archaeological survey was conducted, as the site is adjacent to the historic city wall, and discovered that the land was formerly a mediaeval back yard.

The homes are due to be completed by July 2006, and are aimed at young and single people who will be drawn from local housing waiting lists.

Yesterday, work began on the redevelopment of Diglis basin, to include 422 flats, apartments and houses.