Fears that hundreds of Winchester people could languish on housing waiting lists because of a government change of policy look to have been groundless.

The city council predicted that its social housing programme was destroyed when the Government reformed a social housing grant, hitting debt-free councils such as Winchester.

Now the Government has announced transitional arrangements that look set to protect the council's proposals for some 105 new homes in 2002-03, including 15 others not previously agreed.

Housing officer, Andrew Palmer, said additional funding had been secured, a complete turnaround on last month when the council feared that no social housing would be built next year .

A pleased council leader, Sheila Campbell, said at the cabinet meeting: "The Local Authority Social Housing Grant was axed one week and now the Government is rowing back rapidly. If we get extra funding I'm delighted."

Dominic Hiscock, cabinet member for housing, said: "I know what pressure the housing officers were put under by all this and the hours they were working. They have done excellently to get these 105 houses."

The £5.7m schemes will finance the following: four unconfirmed sites in Stanmore/Highcliffe, £1.3m, 32 homes; Cross Street, Winchester, £135,000, eight; Chilbolton Court, Winchester, £400,000, eight; Sparkford Road, Winchester, £2.2m, 34; Parchment Street, Winchester, £229,000, eight.

Three new schemes would provide 15 new homes: at Wesley Road, Kings Worthy, ten homes; Orchard Close, Colden Common, one; and Brooklyn, Otterbourne, four.

The following are schemes for 80 homes proposed for 2003-04: The Dean, Alresford, £258,000, six homes; Vears Lane, Colden Common, £100,000, two; Salters, Winchester, £645,000, 17; Mountain Ash, Otterbourne, £1.67m, 20; urban sites in Winchester, £1m, 20; Stanmore, £145,000, one; Willis Waye, Kings Worthy, £246,000, five; Harwood Place, Kings Worthy, £499,000, seven; Mountbatten Place, Kings Worthy, £154,000, two.