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A Hampshire market town is set for a big overhaul after councillors approved the next phase of a £125million plan to reshape its centre. The project will see part of Fareham Shopping Centre demolished, new homes built and public spaces redesigned as the long-term regeneration moves forward.

Fareham Borough Council backed the proposals at an executive meeting on February 19, allowing phase two of the scheme to begin. This stage will focus on detailed design work, outline planning applications and preparations ahead of construction. Under the plans, the eastern third of the shopping centre will be knocked down to make way for new pedestrian routes, up to 200 homes and larger public areas.

A decked car park could also be introduced outside Fareham Live as part of the changes.

A £2.6million budget has been set aside to develop the designs, submit planning applications and review how parking will work in the future, including any adjustments to the current Co-op car park.

Council leader Simon Martin said the redevelopment had been a priority since the authority bought the shopping centre in 2023. He said the town centre needed to adapt to changing consumer habits.

Cllr Martin said: "In right-sizing, we recognise that the shopping centre is too large for a town the size we have. Shopping habits have changed significantly over the past 20 years.

"A key part of the masterplan is reducing the amount of retail space to make room for other uses, including housing, food and beverage, relocated office space and potentially hotel accommodation.

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"This is a major milestone in our plans to regenerate Fareham town centre. With around £125million of investment, we are setting out an exciting, achievable vision for the future.

"Ultimately, this is about creating a town centre that works better for everyone - somewhere people are proud to visit, work in and call home."

The wider project aims to attract more people into the area throughout the day and evening by mixing retail, leisure and hospitality uses.

The council will also carry out a detailed review of future parking needs as the scheme develops.

A separate assessment of the civic offices is under way, with more information expected later this year.

The plans received cross-party support. Liberal Democrat leader Cllr David Hamilton called the vision "bold, long-term and rooted in the social good".

He said: "These are bold plans that reorganise how our town centre works and what it is for - more homes, better connections, the right mix of retail and services, and new spaces for community life.

"Regeneration is never quick and rarely simple, but done well, it reshapes a town for decades. These plans are a significant step forward, and we will support them on that basis."

Executive member for planning and development Cllr Malcolm Daniells said the goal was a more attractive, better connected centre.

He said: "The journey is about creating a town centre that is better connected and somewhere people genuinely want to live, work, shop and spend their time.

"Strengthening the link between West Street and Fareham Live will be practically important, but this is not just about movement. It is also about improving the quality of the space itself.

"This regeneration is about making sensible adjustments rather than trying to reinvent the whole town. It is about shaping a town centre that remains relevant, resilient and rooted in what our residents have asked for."