Stagecoach is set to sell off its High Street bus depot site and move to a new home near the railway station.

The move has sparked speculation about what could happen to the current site, which has previously been earmarked as a key plot in Herne Bay’s regeneration.

Stagecoach spokesman Matthew Maytum said: “Stagecoach has outgrown its depot location in the High Street and is to relocate to a new state of the art bus depot to be built in Eddington Lane.

“The current site will be sold, but the move will not affect our customers or the level of bus service in the town.”

The Eddington Lane site has valid planning permission until December next year, and Mr Maytum said the company hopes to be up and running there by next summer.

He added the new premises should be ready in time to commemorate the 100th anniversary of the East Kent Road Car Company, which first started running buses from the High Street in 1916.

Previously, food giant Sainsbury’s had looked to build a new store together with eight flats and a basement car park on the High Street site, but they withdrew their plans in March 2009 due to the high flood risks.

In 2010, the council’s Area Action Plan listed it as one of three key sites for regeneration in the town.

It stated: “The council has been working with Stagecoach over a number of years to identify sites within Herne Bay suitable for relocation of this land use, to ensure the retention of existing jobs within the town.

“Planning permission will be granted for proposals which deliver the comprehensive and high-quality development of this important town centre site for retail and residential uses.”

The document called for shop fronts in the High Street and for up to 30 homes in Richmond Street.

Town centre councillor Andrew Cook says the new bus depot by the railway station will be a major improvement for transport links.

He said: “Having the two close to each other offers huge potential. In particular, if we ever look to build a grammar school it would be in exactly the right place.

“The bus depot in the High Street has caused problems when you have buses parked on either side of the road and cars pulling up and blocking the road. So the new depot will be an advantage in terms of traffic flow.

“The depot is a big site that could open the doors to the future development of the town. With Sainsbury’s opening a store in Beltinge I don’t know if another food store will look at the site.

“At this stage we’re maybe looking at a mixed development and to grab the opportunity for housing and retail together.

“Something I think this town desperately needs is hotels. We need to work out what Herne Bay’s assets are properly.

“We are so close to so many important places like Canterbury, the Turner in Margate, Dover Castle and London.

“We really could make ourselves the destination where people can leapfrog to everywhere. So the site has lots of potential.”