DEMOLITION is underway as work begins on a new development promising to bring in new jobs, homes and student flats.

Work has begun this week on the Circus Street site in Brighton which is set to regenerate the area and inject £200 million into the economy and create 400 jobs.

The first machinery from Dorton Group, based in Burgess Hill, arrived to start the demolition of the old municipal market building with work aimed to be finished by the end of 2015 and construction work on the development will start early in 2016.

Richard Upton, chief executive of developers Cathedral Group, said: “Our neighbours are our first priority and we are working with our partners and contractors to be the most considerate builders in the city to date, working to the best possible standards.”

He added: “We are very excited to start work here - our ambition is to transform the area into a vibrant new quarter of the city, bringing cultural, economic and educational benefits to an area in need of some love.

“Our goal is to make Circus Street the go-to place for Brighton’s creative individuals, innovative business start-ups, students and nearby residents.”

All timber, concrete steel from the demolition works will be reused.

Councillor Warren Morgan, leader of Brighton and Hove City Council, said: “The council is proud to have played its part in helping to bring regeneration to the Circus Street area.

“It is great to see this major project get under way which will deliver much needed homes as well as employment and community benefits, alongside student accommodation that will ease the pressure on the city’s housing stock.”

The scheme includes a new University of Brighton library and academic building with a publicly-accessible exhibition space; 142 new homes, including 28 affordable; 450 student bedrooms in managed student halls of residence.

At the heart of the development is The Dance Space, South East Dance’s new home and 38,000 sq ft of new office space plus workshops offering creative businesses start up accommodation and room to grow.

Jamie Watton, artistic director at South East Dance, said: “At last The Dance Space can become a reality – it will be a vital addition to the dance infrastructure of the whole country as well as a sustainable and permanent home for dance in the city.

“We are delighted to be the chosen cultural partner for this significant development and to support economic regeneration in our home city.”