Winchester City Council's cabinet has decided to honour an agreement to buy back two controversial development sites.

The land, in Thurmond Crescent, Stanmore, and Fivefields Road, Highcliffe, was sold to the Eastleigh Housing Association to build hostels providing supported accommodation for ex-offenders and single mothers.

The original deal, in March, 2003, included an option to sell the sites back in the event of planning permission not being obtained within six months.

City planners have now deemed that Thurmond Crescent, a long cul-de-sac, posed severe parking problems and Fivefields Road was on a dangerously-steep slope.

However, it was the proposed use of the two sites that prompted a public outcry with tenants up in arms about a lack of consultation.

Labour group leader, Patrick Davies, said there should be have been more openness about the issue. He suggested that most of the report considered by cabinet should be publicly available.

The council will hand back the £500,000 it received for the land while the interest it has earned on the capital will be cancelled out by legal costs of £1,000, land registry fees of £370 and stamp duty of £12,530.

The city hasn't lost financially, however, it will now be left with two undevelopable sites.

The full council meeting on November 3rd will be asked to ratify the buy-back decision.