REGENERATION experts are hopeful that office developments in Derby which have stalled during the credit crunch will start moving forward in the new year.

John Cadwallader, chief executive of Derby Cityscape, the urban regeneration company spearheading the £2bn redevelopment of the city centre, said interest from companies in office space in the city was picking up.

He said: "There are some firm inquiries now. I think we are getting more serious inquiries and people look more willing to commit. We are hopeful of some good news in the new year."

Several schemes have planning permission but are at a standstill because the developers cannot find companies wanting to move in. Without firm interest, developers do not want to build as they would be subject to empty building taxes.

The former magistrates' court and police station in Full Street, known as 1 Cathedral Green, and the second phase of the Riverlights bus station development, which would have included offices, are among the postponed developments.

Yesterday Derby City Council added a further blow by revealing it no longer planned to move staff into a new headquarters and instead wants to refurbish and extend the Council House in Corporation Street.

Both Riverlights Ltd and Full Street developer Wilson Bowden were on the short list for a relocated council, along with Aviva's Heritage Gate site.

Council chief executive Adam Wilkinson said he was confident that the future was particularly bright for the 1 Cathedral Green development.

"In a few years, when the market picks up, there will be no problem supplying office accommodation for that demand and it could pick up very soon," he said.

"As for the Cathedral Green development, I think in a better-condition market that is a fantastic development and we will do our bit to help the developers to come up with an end user for the magistrates' court and police station."

Mr Cadwallader said he appreciated the council had to do the best for its own budget.

He said: "It is a disappointment that this won't kick-start one of the other new schemes when the market is at a low.

"But the council has to make the right decision for its own use and having all the team on one site will be a big benefit."

The council previously wanted new accommodation so it could move staff out of smaller rented space dotted around the city, into one central location.

But with the announcement that 465 posts will be axed over three years, Mr Wilkinson said the Council House could accommodate all staff if a four-storey extension was built within a courtyard at the centre.

David Osborne, director of Riverlights Ltd, had seen the council's plans as a way to take forward the second stage of the development currently being built in the Morledge, which includes Derby's new bus station.

He said: "We are obviously disappointed, particularly as we believe the our proposed building would tick all the boxes in respect of the green and sustainable issues which were set out in such detail by the council.

"I'm not sure to what level a refurbished building will meet those targets but we continue to be there to consult with the council if and when required."