A Surbiton property developer has denied rumours that its latest project has ground to a halt, despite builders rarely being seen on site in recent weeks.

CNM Estates, the company behind the former Surbiton Post Office redevelopment, insisted that work on the new Brighton Road site was ongoing, but at a slower pace.

Neighbours speculated that the builders carrying out the work had gone out of business because of the recession, but this was disputed by CNM Estates.

Despite about 10 builders working on site when work began, this number has dwindled to only three or four, on a part-time basis, neighbours claimed.

It is not yet known when work will be completed at Surbiton Place, a block of flats, houses and offices next to Seething Wells Lane.

A spokesman from CNM Estates said: “It would be silly not to slow down. It would be a miracle if we weren’t affected like everyone else by the recession. We just have to knuckle down and hopefully see it through.”

CNM Estates, which sponsored the Rose Theatre’s A Christmas Carol performance, confirmed it had decided to rent out some of the flats in its Surbiton Plaza development in Victoria Road, after offers to buy them dried up.