PEOPLE living in 72 flats in Sandy Hill could be temporarily relocated while their three-storey blocks are demolished to make way for up to 65 new houses.

Pavilion Housing Association, which owns all but three of the homes at the shops end of Sandy Hill Road - the remainder have been bought by tenants - says the two 36-flat blocks, with ground floor flats and upper level maisonettes, have unsatisfactory layouts and access arrangements and offer little privacy.

Although Pavilion, which bought most of the 1970s homes from Rushmoor Council in 1995, is yet to produce detailed plans, it has asked Rushmoor and Waverley councils to help fund the redevelopment and temporarily rehouse tenants.

A Waverley committee this week ruled out either option, with councillors agreeing with their officers' advice to use money instead for new affordable housing.

The decision will have to be ratified by the council's policy-making executive and the full council, but is unlikely to be overturned.

In a report to members of Waverley's community overview and scrutiny committee, officers also stated the council "is not in a position" to support the scheme.

Chairman of RASH (the Residents' Association of Sandy Hill) Steve Newport told The Herald the earmarked flats have problems, but strongly criticised Pavilion for a lack of consultation.

"I certainly think the flats are unsuitable accommodation for the type of people put in them.

"I've had two people come to me asking if anything can be done; they've got small children and they've got to get pushchairs up there.

"But I'm gobsmacked it's being discussed without any consultation of the residents. I can't understand why Pavilion haven't brought it up with the residents' association. Questions are being asked, but it's all rumour."

More than half of the 520 properties on the Sandy Hill estate have been bought under the Right-to-Buy scheme, but Pavilion still owns and manages 239, most of which are occupied by Rushmoor Borough Council tenants - Rushmoor has 66 per cent of the nomination rights.

Liberal Democrat Waverley councillor for neighbouring Hale and Heath End, Willy Marshall, sits on the committee that on Tuesday night voted against Waverley supporting the scheme.

Mr Marshall told The Herald: "I reinforced the point so they (Pavilion) won't get the idea that we'll soften up.

"I couldn't support the use of Waverley council homes for the decantation of people waiting to be rehoused.

"Rushmoor got rid of the houses to the housing association and now they haven't got the houses. If Rushmoor wants to get rid of housing, they should realise that they still have nomination rights on 66 per cent of the houses."

Mr Marshall said he might look more favourably on the proposal if Rushmoor gave up some of its nomination rights.

"I'm most concerned. I have over the years had battles with housing associations over low standards that council tenants wouldn't put up with."

In a statement, Pavilion Housing Association said: "As the report makes clear, since Pavilion took over the Sandy Hill Estate in 1995 we have been working very closely with Waverley Council, the residents and many other agencies to improve the neighbourhood and build up the local community.

"We have now reached the point when more radical options are worth considering.

"Before putting them to residents, it was important for Waverley to consider its priorities for further investment, lest we falsely raised expectations."

The statement continued: "We appreciate the interest that Waverley has taken and continues to take in Sandy Hill.

"We welcome the opportunity we now have to consult with our residents, with whom Pavilion has developed a strong relationship.

"Clearly this report is just one step in a process that will involve extensive discussions and the exploration of the options.

"The development options are complex and costly. If and when they do go ahead at all solutions will be found for all residents affected."