PETERSFIELD'S low-cost housing situation is "of grave concern", the town council heard on Monday. Members were presented with a report of the Larger Local Councils Forum, where town councillor George Watkinson had raised the question of affordable homes for Petersfield. He had asked representatives from East Hampshire District Council to clarify the effects of the recent report by a government planning inspector on the district's plan for the region. Officers responded by reassuring councillors that district targets for affordable housing would be met "after some minor changes", but that the situation was under constant review. A report of the forum, presented by Mr Watkinson, stated: "...the situation for Petersfield as an entity was of grave concern as there were no large developments planned which were necessary to provide affordable houses. "EHDC will remain flexible, continue discussions with parishes and be constantly on the lookout for affordable housing sites, particularly for the Petersfield area." And at a town council meeting this week, members were told the problem was top of the EHDC agenda. Mr Watkinson added: "Petersfield is their problem area and is top of their concerns. It is under constant review." In April, former town councillor John Crowhurst claimed Petersfield faced a serious shortage of low-cost housing after large development sites were relegated to the back burner in the local plan inspector's report. He was concerned because most affordable social housing depended on large developments such as Ramshill, where builders were obliged to provide a certain percentage of low-cost houses. The annual forum, chaired by EHDC leader Andrew Pattie, also addressed devolution of services, Community Initiative Funding and street lighting responsibilities.