A consortium says it is reviewing its £1bn plan to transform an old power station site by building a "small town" overlooking Southampton Water.

Fawley Waterside has also revealed that its founder and chief executive, Aldred Drummond, has "stepped back" from day-to-day management of the 300-acre site.

The two developments have sparked fears the landmark scheme could be scrapped or scaled back.

In 2017 the consortium unveiled proposals to provide 1,500 homes, plus a raft of commercial and community facilities, including a new primary school.

It published several CGIs showing a Venice-style development with elegant buildings overlooking a canal running through the middle of the site.

Fawley power station has already been demolished to make way for the scheme, but Fawley Waterside is still waiting to be given full planning permission.

Daily Echo: Fawley Waterside is 'reviewing' its plan to build 1,500 homes overlooking Southampton WaterFawley Waterside is 'reviewing' its plan to build 1,500 homes overlooking Southampton Water (Image: Fawley Waterside)

Some of the land is within the New Forest National Park, which means the district council can decide only part of the project.

Consent for 1,380 homes was granted by the council in 2020, subject to the completion of a Section 106 legal agreement that has yet to be signed.

READ MORE: Plan to transform Fawley power station site given the green light

An outline application to build 120 homes on another part of the site has been submitted to the New Forest National Park Authority, which says the proposal is still under consideration.

Daily Echo: Fawley power station has been demolished to make way for the proposed developmentFawley power station has been demolished to make way for the proposed development

The scheme aims to create what Fawley Waterside describes as "one of the most beautiful small towns in England".

Responding to recent rumours the consortium said: "Aldred Drummond has stepped back from day-to-day management of the site, but remains part of a firmly committed group of investors behind the project. 

"The team is currently in the process of working with its advisors to review the current plans for the scheme and to determine the next steps to advance the development of the site, and we look forward to sharing further news in due course."

Fawley Waterside has not said why Mr Drummond has stepped back or why the review is necessary.

But district councillor David Harrison, who represents part of the Waterside area, said: "This may be a significant and unwelcome development if it turns out the scheme will ultimately be dropped or drastically scaled back.

"It promised so much in terms of the economic boost, jobs, and housing it would deliver. A huge amount of work has gone into it.

"It also calls into question the scheme being promoted by Hampshire County Council to partially widen a stretch of the A326 at a cost of some £115m."

Mr Drummond has been contacted for comment.