Council-owned land set to become affordable homes has now gone on the market.

The large site in Fountain Street, Sittingbourne, was previously earmarked for housing but has now been offered at auction.

Swale Council agreed in October 2020 to borrow up to £23million to fund its own housing company Rainbow Homes Ltd.

It was formed in a bid to boost the number of affordable homes in the borough.

In June 2022, the authority decided to push ahead with a project converting three sites into flats.

This included Cockleshell Walk, East Street and Fountain Street – a total of 170 homes for the town.

At the time, Emma Wiggins, director of Rainbow Homes, said: “We will be working with our partners to provide local people with a home of their own, built to a good standard and offering a mix of affordable tenures.

“Our focus will be on creating sustainable communities which make a real difference to the lives of those who live there.”

The land on Fountain Lane had been left vacant for several years and wasn’t suitable for letting due to its condition.

It had been the target of antisocial behaviour and was subject to an arson attack in July last year.

The main building has since been demolished due to its condition and structural integrity.

During a recent economy and property committee meeting, it was said that Rainbow Homes wouldn’t be able to develop it and decided the land should be sold.

The report notes that the council had received enquiries from people interested in purchasing the land for development.

“A sale of the freehold would generate a capital receipt for the council while removing a financial and health and safety liability,” it went on to say.

Fountain Lane is among 178 lots listed for sale by Clive Emson, land and property auctioneers. The freehold guide price is £750,000-plus.

Auctioneer Kevin Gilbert added: “The site is 0.58 acres (0.24 hectares) in area and is close to the railway station, supermarket and car park.

“Demand for housing is still high and a developer could transform this part of the town with a new development.”

Plans to build more than 70 homes on the council-owned land in Cockleshell Walk were approved in May.

Despite residents concerns, Rainbow Homes is set to construct 51 apartments on the car park, as well as 20 flats and a retail unit on Troka Tyres and Car Services.

Plans have not yet been revealed for the land in East Street.

The sale of Fountain Lane will conclude on Wednesday, September 18.

Swale Council has been contacted for comment.