The Office of the Deputy Prime Minister has purchased the former Lord Mayor Treloar Hospital site, in Alton, along with many other redundant NHS sites around the country.

They will be appointing English Partnerships, a member of the new Regional Housing Board, to regenerate the site, including provision of affordable housing.

It will also address the requirement for employment premises on the site, help achieve the community facilities needed and work with Hampshire County Council to address highways issues at Chawton Park Road and Northfield Lane Bridge.

Deputy leader of East Hants District Council, Sam James, commented: "We haven't yet had a chance to study the proposals and it is as unclear as to which land they affect. But if they can enable more local people to buy or rent a home, then this initiative is to be welcomed."

Private sector development has already started, with 183 homes built and the potential for a further 150 new homes and business premises identified in the EHDC Local Plan.

The council has worked with the private developers and housing associations to ensure that the new community is sustainable. A community development worker was recently appointed, funded through the partnership and Housing Corporation. Her role is to consult with the new communities and develop links and networks between residents, through community associations and youth forums.

English Partnerships will build on the work so far and involve the community to ensure that the remainder of the site meets local needs.

Any further development of affordable housing would be carried out by a housing association, which would ensure a range of options for local people, including affordable rented, low-cost home ownership and key worker housing.

In turn, this will help the council to its target of having nil families with children in B& B accommodation.