Winchester City Council is considering building up to 300 council homes in the next 10 years.

An investment plan that could potentially support the building of between 200 and 300 council homes was put forward in a report approved by council chiefs.

The council’s Business Plan includes provision for £42 million of investment in new homes over the next 10 years.

Cabinet members approved proposals for the establishment of a programme of new build council housing.

The Hampshire Chronicle revealed last week that more than 4,400 people are on the city council’s waiting list for a roof over their heads with a rise of 70 per cent in the past two years.

New government rules are set from April to allow the council to retain rent it receives from tenants if it makes a one-off payment of £157m to government.

Much of that rent is currently paid to the government, but the new system would allow the council to use it to increase funding for housebuilding and maintenance.

This means the council will be in a position to build its first council homes in 25 years.

The report proposes that the provision of homes work alongside, not replace, housing association partners.

However, the report also noted that the deliverability of a build programme of this size would be subject to many factors such as land availability, effective community engagement and developing sufficient capacity to support it.

The report also details the council’s plans to address the condition of its housing stock as a result of the changes – this remains its key priority.

Although they have been assessed as being in good condition generally, the report said that energy ratings are some of the highest for council homes in the country.

More than 800 properties have kitchens over 20 years old or bathrooms more than 30 years old, according to the report.

Cabinet members approved the plans as part of the Housing Revenue Account Budget 2012/2013 and Business Plan, indicating the council’s investment plans over a 30-year period.

They will now go to full council for approval.

Cllr Lucille Thompson, Liberal Democrat shadow portfolio holder for communities, praised the plans to build council houses again and that she was encouraged that the figure being talked about was 300 homes over 10 years, which was much more ambitious than what was at first proposed.

She said it meant Winchester could start addressing its housing needs, which it has not been able to do for many years.

However, she urged the cabinet to press ahead as soon as possible with the scheme because the government could change the rules at any time.

“We wouldn’t want opportunities to be lost because the money is being spent elsewhere,” she added.

Council leader Cllr George Beckett said the priority of the council was to maintain the standard of its housing stock, but it was possible to have more than one priority.

The programme will be taken to the cabinet housing committee in June.