NEW homes could be built in the car park of a pub to fund £355,600 worth of improvements.

The owners of The Red House, in Whitchurch, have applied to Basingstoke and Deane Borough Council to build two three bedroom homes and one two bedroom home on the site, and make alterations to the pub building.

Regional Inns (UK) Ltd said in its application: “The owners of the business view The Red House as part of the town fabric and they are extremely conscious of protecting and enhancing the historic building, as well as ensuring the long term future of the business.”

In 2011 the pub, in London Street, was “on the brink of closure, facing bankruptcy” and at the time, one of the two partners wanted to close the pub and turn it into residential dwellings.

However, this was blocked by the other partner and a buyout ensured the pub was saved from being lost to the town.

Following this, significant money was spent on improvements and over the last four years the business has had a “dramatic increase in turnover”.

Regional Inns said: “Outdated facilities and equipment have the potential to make the business a victim of its own success.”

The company now plans to invest in the pub, but said it cannot raise the entire amount.

It added: “The proposal enables equity to be released and the funds to be invested into the refurbishment.”

It includes replacing a toilet block; creating an entrance to the garden from the pub rather than via the car park; extending and refitting the kitchen; landscaping the garden; and repairing the building.

Leaflets, titled ‘Another green part of Whitchurch lost’ have been distributed around the town asking to “help fight The Red House development”.