DEMOLITION work has started on the controversial former Beechwood Lodge hostel for the homeless in Basingstoke - and it is set to become a site for new homes.

The north Houndmills site, formally known as Beechwood Lodge and the United Caribbean Association, is currently owned by Basingstoke council and Stonham Housing Association.

The two-and-a-half-acre site is being sold for residential development, subject to planning consent.

It is anticipated that at least 30 per cent of the properties will be affordable housing, with a further 30 per cent set aside for un-subsidised low-cost key worker housing.

Former Beechwood Lodge resident Alan Holley, from South Ham, said it is a shame that the building, once praised by the Prince of Wales for its innovative design, is being demolished.

He said: "I would like to see some of the money made from the property ploughed back into helping the homeless in this area."

The hostel hit the headlines when it was reported that four men who had previously lived at Beechwood Lodge died after being sent out into the community following its closure.

Last month saw the publication of an independent report, commissioned by Basingstoke council, which highlighted a lack of co-ordination between Stonham Housing Association, social services and the borough council.