Upper Hunter Shire Council business development officer Sean Constable said the council had development consent for 20 lots but he does not expect building to start for 12 months. He said the council is also looking at other alternatives.

Mr Constable said the funding that is needed to start building has been included in the budget for next year but the money is also tied up in the other developments.

Council uses the money from previous developments to fund each new development but interest rate rises have reduced the number of people seeking to buy vacant land and build new homes.

Mr Constable said the 15 lots at Merriwa have been on the market for a year. But only five of these lots have sold.

In the six months since the Murrurundi lots opened only one of the 17 lots has sold.

Mr Constable said the remaining 16 lots have a great view and are fully serviced.