ONE of Britain's biggest housebuilders is making a third attempt to win permission for a multi-million-pound housing scheme in Totton town centre.

McCarthy & Stone submitted two previous proposals to transform a rubbish-strewn site in Water Lane - but the district council rejected both applications.

Now the company has submitted a revised scheme in a bid to overcome the objections.

The application cleared its first hurdle when it was supported by Totton and Eling Town Council's planning committee following a meeting of the town forum.

McCarthy & Stone aims to build the H-shaped building comprising 48 flats and five shops between Water Lane and Ringwood Road.

The district council wants the scheme to include social housing.

However, the applicant has submitted an alternative proposal to make a £400,000 contribution towards the provision of affordable housing elsewhere in the area.

Planning consultant Alex Child said: "It's quite a small site and I don't think we could provide retail units, sheltered housing and affordable housing in the same building."

Many residents and traders at the forum meeting welcomed the latest attempt to transform the "eyesore" site.

However, they complained that traffic visiting the complex would have to use Popes Lane, a narrow cul-de-sac with no pavements.

A report to the council's planning committee praised the new design, saying the Ringwood Road frontage had been "broken up" to improve its appearance.

It added: "The applicant has made considerable efforts to meet the district council's requirements."

The saga began in 2003 when McCarthy & Stone's original proposal was rejected after the council criticised the design and the shortage of retail units.

Last year the company cut the height of the building and included more shops in the £3m scheme, but that proposal was also refused.