The Executive decided to progress with a joint agreement between the Council, Cardiff Community Housing Association and Cardiff and Vale University Local Health Board to fund the multi-million pound scheme.

The Loudoun Square regeneration project consists of a new shopping parade, a new community space, five start-up units suitable for social enterprises or local businesses, a community health centre offering a variety of health services, plus13 new town houses and 48 apartments.

Plans for the regeneration of Loudoun Square were first reported to the Executive in 2008, when the Executive agreed in principle to proceed with the transfer of council land and all associated property to facilitate the development.

The £16m scheme will be led by Cardiff Community Housing Association (CCHA) and will be funded from Social Housing Grant, the Welsh Assembly Government in relation to the health centre and the remaining funding coming from CCHA.

If the joint agreement is approved, it is hoped work could begin in Loudoun Square in the early part of 2010.

Executive Member for Communities, Housing and Social Justice, Cllr Judith Woodman, said: “I am delighted the regeneration has been approved, the area will benefit economically and socially from the scheme and I know that many residents are looking forward to work commencing.”