One of Hampshire's most prominent office blocks could be about to be transformed.

Basingstoke and Deane Borough Council has received a planning application to convert the iconic Churchill Plaza into 216 one-bed, 23 two-bed and 18 studio flats.

Building owners Seven Capital had originally put around £15million investment into redeveloping the building, creating a new modern office space.

However, it now seems these plans have been scrapped in favour of converting the office space into new residential living.

Cabinet member for finance and resources at the borough council, Councillor John Izett, said it is disappointing to lose such valuable office space right in the city centre.

Cllr Izett said: “I would like to see it remain as an office building as prime office space in Basingstoke is at a premium. However, I would rather see the building be redeveloped than left empty and not being used.

"There is a growing need for accommodation in Basingstoke and Churchill Plaza would act as an ideal location.”

Due to legislation rolled out by the government, the estimated £11.5million redevelopment would not need full planning permission because of permitted development rights, which hands powers to the building owners when converting an office space into residential living.

 Because of this legal loophole it also means that Seven Capital won’t have to adhere to the borough council’s policy of providing 40 per cent affordable housing in all new developments.

Labour councillor Paul Harvey said losing developments to these permitted development rights is not helping the people of Basingstoke.

“As we are seeing more and more of these permitted development rights put into action, we are seeing less and less employment spaces,” said Cllr Harvey.

“If this development does go ahead and is not offering affordable housing or office space who does it really benefit?”

Churchill Plaza is currently occupied by Barclays bank, and if planning is given the green light development will start once the current lease expires at the end of the year.

Managing director at Barclays, Karl Trumper said the end of the lease at Churchill Plaza has given the company the opportunity to review its operations.

He said: “Our relocation plans, coupled with the changes announced in September 2015, will enable us to continue to meet the needs of our customers, improve operational efficiencies and evolve our business both locally and nationally.”