Costs for a major housing scheme set to bring thousands of new homes to the Eastleigh borough could soon rise to nearly half a billion pounds.

Eastleigh Borough Council is set to approve extra funding of £162.6 million to build the first 381 of around 2,850 homes planned for the One Horton Heath project.

The new money, which comes on top of £322.8 million already approved, would take the total bill for the scheme to £485.4 million.

Costs could rise even further as more funding is set to be approved for later stages of the project.

Daily Echo: Works take place on new link road for One Horton Heath scheme. Works take place on new link road for One Horton Heath scheme. (Image: EBC)

The “landmark decision” is expected to cover the costs of building the first batch of homes, a new three-form-entry primary school and infrastructure.

The council is paying £300,000 a month in interest on the borrowing.

But once all houses are built, the council is expecting to make around £250,000 in profit each year as it pays off the debt over the next 50 years.

Council leader, Keith House, said the new funding is an “important milestone and demonstrates the important and innovative role the council is playing in delivering these much-needed homes”.

He added: “This scheme is more than just a housing project, it also represents a good investment in our community.

“In time it will contribute income to pay for our local services and support the on-going provision of affordable housing in Eastleigh.

“We have ensured that the housing really does meet the needs of local people, with energy efficient homes being built for affordable tenants, for rent and for family homes.

“Importantly, we are also demonstrating that this can be done at the same time as delivering the right infrastructure and community benefits, not after development.”

Cllr Steve Broomfield previously called for independent scrutiny of the plans adding: "I don’t think the people of Eastleigh are being best served.

"It seems very apparent that services are being diverted at Eastleigh to put into One Horton Heath."

Daily Echo: Drone footage of green space for the One Horton Heath projectDrone footage of green space for the One Horton Heath project (Image: EBC)

The new funding, which is expected to be paid off using future income from the scheme, will be discussed on December 21.

It includes £18.6m for a new primary school which follows on from the opening of Deer Park School in Hedge End in 2021.

The council says 35 per cent of the homes will be affordable, social rented, and shared ownership homes, while 33 per cent will be available for market rent.

They are not expected to rely on fossil fuels with ground-source heat pump and a 6.3 megawatt solar farm also included in the scheme.

One third of the site, more than 125 acres, won’t be developed with the first patches of new public open space and habitat areas completed in September 2021.

Daily Echo: One Horton Heath solar farmOne Horton Heath solar farm (Image: EBC)

Eastleigh Borough Council’s local plan target is 729 new homes per year with over 2,300 families currently on its housing register - up from 1,800 in 2019/20.

The new £11.7m road linking Hedge End and Bishopstoke is expected to be complete next summer.

A spokesperson for the council said: “The project will provide a significant economic boost to the area, creating jobs through our contracts and supply chain, developing new commercial and retail premises and stimulating local businesses.”