WINCHESTER civic chiefs are back at square one over the aborted project to build hostels for ex-offenders, teenagers leaving care and single mums.

Policymakers on the ruling Cabinet were today set to recommend that the council spend more than £500,000 buying back two sites from Eastleigh Housing Association.

The land in Thurmond Crescent, Stanmore, and Fivefields Road, Highcliffe, were originally earmarked as sites for supported housing for vulnerable people but the plan was scuppered by public opposition earlier this year.

The original deal with Eastleigh in March 2003 included an option whereby the association could sell the site back if no planning permission was gained within six months.

For undisclosed reasons the six-month deadline elapsed, technically leaving the association owning two undevelopable sites.

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

Opposition councillors in the summer questioned whether the council was obliged to buy back two near-useless pieces of land.

Such a stance would wreck its relationship with the association.

Patrick Davies, Labour group leader, said after receiving more information he was persuaded there was good reason for the deal to go ahead.

He said: "The problem was we were not told the whole story. There were many unanswered questions. Eastleigh are our partner and we don't want to upset that relationship."

Dominic Hiscock, portfolio holder for housing, said the council had a moral obligation for buy back the land. The association had always acted in good faith and missing the six-month deadline was not its fault.

In a formerly confidential document released by the council the price of the sites were: Fivefields Road, £119,000 and Thurmond Crescent, £378,000.

The council will pay the legal costs of £1,000, land registry fees of £370 and stamp duty of £12,530. However those fees will be covered by the bank interest accrued on the sale sum from 2003.

The issue was due to be discussed today in confidential session. The Cabinet is due to make a recommendation to the full council meeting on November 3.