A DERELICT former children's home may soon be demolished to make way for a purpose-built block of 12 two-bedroom flats.

Planning permission for the project at Palmerston House, in Botley Road, Romsey, is being sought by Southampton-based Orchard Homes.

In 1997, Hampshire County Council, which owns Palmerston House, applied for planning permission to build 12 houses in the grounds. This was rejected but an application to convert the building to flats was approved, and has recently been extended. There is also outline planning permission for 12 bungalows to be built at the rear of Palmerston House, but Nick Eagle of Orchard Homes stressed that was nothing to do with his company.

A spokeswoman for Hampshire County Council said there were two parcels of land. Planning permission to develop Palmerston House was being sought but no decision has been taken about land at the rear of the house for which there is planning permission for the bungalows.

For many years Palmerston House, which was purpose-built in the 1930s, was used by Hampshire County Council Social services, as a children's home. In the 1960s it became an assessment centre and in 1967 it was extended at a cost of £23,000. In 1988 the assessment unit closed and for the next 11 years it was used as offices by social services until they moved to the Old Magistrates' Court. Romsey School used the building until last November. Since then it has been empty and is now boarded up.