Work has started on a £1.2 million housing development in the centre of Tyldesley, Wigan.

Twelve bungalows are being built on the site of the former Kingshill Special School in Elliott Street. It will be known as Kingshill Manor.

Wigan Council gave the go-ahead for the 100-year-old school, which lies in the Tyldesley Conservation area, to be demolished last year despite conservationists saying it was a substantial building of local interest. The land has been bought by Astley-based company, Redwaters, which specialises in retail and commercial developments as well as residential ones.

The tender to build the homes was won by another Astley company, McCauls. McCauls was started more than 50 years ago, and its most recent major project was on the site of the former Village pub in Green Lane, Leigh.

Last month it started work on another exclusive development, The Point at New Islington in the centre of Manchester. McCauls director, Tony McCaul, said he was delighted his company had been successful in securing the Kingshill Manor project.

He said: “This is the second major contract we have secured recently, and it is a sign we are starting to see more confidence in the construction industry.”

Redwaters has used a local architect for Kingshill Manor. It will consist of 10 semi-detached bungalows and two detached ones in landscaped gardens, and will have the added security of electric gates. It is hoped the first ones will be ready by July.

Bungalows are back in fashion again and proving popular with the elderly, couples wanting to downsize and those with limited mobility.

“We have been taken aback by the interest in Kingshill Manor, which proves what the experts are saying, that bungalows are now the most sought-after properties in the UK,” said Redwaters director Stephen Williams.

“We have had dozens of inquiries and several firm reservations, and are already looking at building more bungalows in the area.”

Mr Williams said Redwaters was delighted to work with McCauls.

He said: “We like to work with local companies where possible, and McCauls has a fantastic reputation for building desirable, quality homes.”

The bungalows are £139,950 for the semi-detached ones and £159,950 for the detached.

Redwaters is organising a meet and greet day to show local people the plans for Kingshill Manor.

The event will be held at Tyldesley Rugby Union Football Club on Astley Street from 6pm to 9pm on Wednesday, March 13. Anyone who would like more details should ring 01942 877600 or visit redwaters.co.uk.