A REPORT looking at how many new homes should be built in Hampshire due to be released today is expected to recommend up to 128,300 new homes should be built in the county over the next two decades.

The Examination In Public report on the controversial South East Plan is due to recommend that between 4,000 and 5,000 new homes be built at two strategic development areas in Fareham and north of Hedge End between 2006 and 2026, while the rest of the homes should be built in the rest of the county.

In Test Valley around 600 new houses were also earmarked, with 1,800 suggested for Winchester.

The report highlights Southampton and Portsmouth as possible regional hubs' of significant growth, and stated that any development should take place predominantly to already existing towns, adding that creating new settlements would be unlikely.

It states that Southampton's port is the most important on the south coast and any development will have to take into consideration impacts on the port.

Transport links and water management were also marked as key areas to consider in the development of the county, with improvements recommended at the Chickenhall Lane relief road in Eastleigh and the interchange at Southampton Airport.

Better rail links between Southampton and the Midlands were also suggested.

The report also warned that the Winchester district should make more provisions for new houses, but said that building on greenfield sites should only go ahead to the north of the city.

The news was welcomed by the Partnership for Urban South Hampshire, who said that more housing is needed in south Hampshire to fuel economic growth, provided it is linked with infrastructure.