A CAR firm's decision to switch its operations from Chandler's Ford to Eastleigh town centre is likely to open the door for more homes.

The Hendy Group plans to create a state-of-the-art car dealership and workshop on the Mr Kipling site in Leigh Road.

Manor Bakeries is closing the bakery by the end of the year, clearing the way for Hendy Ford to move in along with other industry. Group managing director Paul Hendy said: "We do not anticipate opening our new facilities until 2007."

Attention will now swing back to Hendy's five acre site in Bournemouth Road, Chandler's Ford, which Eastleigh Council has strongly favoured as a prime brownfield site for housing.

A council spokesman said: "In the council's draft local plan the Hendy site in Bournemouth Road is identified as an urban capacity housing site."