The reconstruction of Lower Pulrose could be completed within a couple of years.
Douglas Borough Council is progressing the final phase of the multi-million pound development, which will consist of 34 properties on the currently open space behind Domino's Pizzas.
Subject to all the necessary approvals, work on the ?4.8 million phase five is expected to start within a year, with a completion time of around 18 months.
Chairman of the Leisure Services Committee Colin Cain says the finished estate will have fewer properties, but of a much higher standard than before:
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