UP to 26 small businesses could be forced to leave Winchester because they are being evicted from their offices.

The firms, many of them start-ups which had been looking forward to a bright future in the city, are all tenants at Dolphin House, a serviced office building in St Peter Street.

But the owners of Dolphin House, Store Property Investments, served notice on Friday that the tenants had three months to get out.

The news came as a particular shock to one tenant, Mike Hall, because he received his eviction notice just one day after moving into the four-storey building, next to the Catholic church.

Although Mr Hall's business, Financial Services Contracting, has no staff yet, it has been growing fast and he has worked for big companies like Norwich Union and Abbey.

Mr Hall, who lives in the Hyde neighbourhood of Winchester, said he had few options if he wanted to keep his business in the city.

"It's very, very difficult to get a small office in Winchester," he said.

Property experts say the closure of Dolphin House to small firms means Winchester is left with only two providers of small business accommodation - Southgate Chambers in Southgate Street and the Cavendish Centre at Winnall.

Both of those are thought to be close to full.

The managing agent for Dolphin House continues to be Lambert Smith Hampton, whose spokesman, Rob Faulkner, said that the building was to be closed for refurbishment and conversion for letting on a floor-by-floor or single-tenant basis.

Mr Faulkner said that the decision followed a change of ownership at Dolphin House, with the building now in the hands of Chichester-based Store Property Investments.

The property had been owned by Phoenix & London Assurance, part of Royal & Sun Alliance, and managed by Resolution Asset Management.

Jim Sawyer, Winchester chairman of North Hampshire Chamber of Commerce and Industry, described the situation as "very concerning for small businesses".

Winchester City Council said on Tuesday that the council's economic development officer, Kate Crawford, was available to advise any firms made homeless.