BUSINESS leaders have welcomed a multi-million-pound plan to redevelop the former Debenhams site in Southampton city centre.

The iconic building in Queensway could be demolished to make way for about 600 new homes in a move expected to create 250 jobs.

GO!Southampton believes the presence of so many extra residents could boost trade in the area as well as deterring crime.

Executive director Giles Semper said: "This part of the city centre is rapidly developing into a residential quarter and so we were expecting a largely residential scheme for the Debenhams site.

"At first sight it appears to be a quality scheme. It’s a shame to lose Debenhams and its famous building but it’s satisfying that progress is being made.

"We think it’s a good thing for the city to have more people living close to the high street. They will spend in both the daytime and evening economies and deter the kind of crime that thrives in empty streets.

"Now we just need the A-grade employment space that will provide the high-wage, high-skill jobs the city has lost.

"We’ve always felt this should be situated as close to the station as possible and our view on this hasn’t changed."

Sarah Bogle, a Labour councillor for Bargate ward and shadow spokesperson for transport and planning, praised the inclusion of much-needed affordable housing.

She added: "Overall I welcome the plans to redevelop this important site and hope they will be of high quality design that compliments the parks opposite.

"The whole area from Queensway to East Street and up to the Bargate is undergoing major change at the moment, with increasing amounts of residential.

"Services, including health facilities like GP surgeries, will need to expand to keep up with the rising population in the city centre."

Fellow Bargate councillor John Noon said he hoped a large part of the site would be used to provide three-bed family homes.

He added: "I believe there is a real need for good quality homes at affordable rents and do support this site being used for new homes, but wait for further details before giving it my full support."

Plans to transform the Debenhams site have been put forward by National Regional Property Group.

Allan Gordon, the group’s managing director, has said the proposed development will deliver much-needed new homes as well as helping to rejuvenate a key part of the city.

The scheme has sparked a flurry of protests on social media.

One person predicted that plans to demolish the iconic building would spark uproar, saying it held happy memories for most of the people who worked or shopped there.

Another said: "Southampton is a concrete jungle with all our history buried beneath it. Such a shame."