Work to revamp Manor Heights in Hadley, a derelict block of 1960s high rise flats, has been put on hold because of the credit crunch, it was revealed this week.
The eyesore flats, once notorious throughout Telford as a crime and drugs den, have been standing empty for years.
Last year, they were bought by developers Russell Harrison Plc from Oxfordshire which announced big plans to revamp the 1960s building. But now the developers say work has been put on hold due to the current climate.
Planning permission was given to the company by Telford & Wrekin Council in September last year.
It was intended to transform the derelict building with a 12-storey extension to the block and build eight apartments on the same site. There were planned to be 68 apartments with 51 parking spaces.
Pat Smart, chairman of Hadley and Leegomery Parish Council, said: “It is extremely disappointing – we had high hopes for this development in the area.”
No-one has lived at Manor Heights since a police raid in 2001 saw 30 arrests for drug dealing.
A spokeswoman for Russell Harrison PLC said: “I can confirm that due to the state of the economic climate we have put the project temporarily on hold.”