THE Royal Yachting Association has had the wind taken out of its sails over plans to develop its prime Eastleigh town centre site.

Cash from the sale of its current Romsey Road base, pictured, is being ploughed into building a new headquarters at Hamble.

Proposals by Britain's retired sheltered house kings McCarthy and Stone to demolish the imposing Romsey Road building and build a four-storey block of 33 flats have been kicked out by Eastleigh councillors.

Despite this setback the RYA has told the Daily Echo that it is still on course for next month's move to Hamble.

One of the major reasons for giving the thumbs down to the sheltered housing scheme was that none of the flats had been earmarked for social housing.

Planners were also concerned about the proposed high density and lack of adequate parking.

Speaking at the local area committee, Eastleigh mayor Councillor Gillian Connell said: "What is needed is affordable housing."

Determined to press ahead with their development plans, McCarthy and Stone is to appeal against the local area committee's decision.

The Royal Yacht Association's chief executive Rod Carr told the committee that the association was keen to keep its current workforce in Eastleigh borough.

Staffing levels were expected to increase at its new home in Ensign Way, Hamble, where a royal opening was planned.

The RYA currently employs 90 people at its headquarters.

In a statement to the Daily Echo, Mr Carr said: "While we are disappointed that Eastleigh Borough Council has refused planning permission for the development of the site in Romsey Road, we are looking forward to our move to Hamble in March.

"We at the RYA have worked very closely with the Borough Council to remain in the area and are pleased with our new premises but are surprised that planning permission has been declined for Romsey Road.

"The developers will appeal against the decision and I wish them the best of luck resolving the issues the council raised."

He added: "Our new premises are now nearing completion and will provide an excellent working environment for the RYA team to move forward and carry out its roles more effectively. 2003 is an exciting time for the RYA and we are confident that we have made the right move for the future of boating."