The former Petersfield headquarters of East Hampshire District Council is coming off the market.

But that doesn’t mean a buyer has been found for Penns Place – as council chiefs have decided to put its potential sale on hold amid uncertainties about Local Government Reorganisation.

The council has acknowledged the move is likely to frustrate prospective buyers, especially as the 3.77 acre site was first marketed nearly two years ago.

A spokesperson said EHDC received a “wide range of bids” for the “important site” through marketing and local engagement, with each scheme offering merits, risks and uncertainties.

And although they thanked bidders for their work and proposals, the government’s U-turn to review LGR – and its controversial plan to divide East Hampshire – means there are too many uncertainties.

The spokesperson added: “Although local government reorganisation has been put on hold, it is likely that in the short to medium term the sites will be transferred to a future council.

PP Penns Place Petersfield PIC2
The former Penns Place of East Hampshire District Council. (Iliffe Media/Paul Ferguson)

“A unitary authority will have responsibility for a much broader range of services.

“Ultimately, we believe the only responsible course of action is to defer any decision until the future of local government is more certain.”

The only bidders to go public have been Dan and Sharon Destrecroix, with the Post previously reporting on their vision to turn Penns Place into The Futures Campus CIC.

The pair said they were “extremely disappointed” but understood EHDC’s right to make its decision, given uncertainties about LGR.

However, they both have concerns about what will happen to Penns Place in the meantime, with town mayor, Cllr Jamie Matthews, raising similar concerns to Petersfield Town Council on Thursday evening.

“This is a substantial publicly owned asset - some 43,000 square feet - that has stood empty since early 2024,” said Dan and Sharon in a joint statement.

“Empty buildings do not stand still. They require security, maintenance, utilities and management, their condition deteriorates, and the cost of eventually bringing them back into productive use increases. Those costs are borne by the public.”

Cllr Matthews added: “The council vacated the buildings in March 2024 and it’s been empty ever since, getting even more derelict.

“It’s disappointing because they were so far along. Our community, especially our sporting community, deserves clarity on what is going to happen on their site as two years is a long time only to carry out a U-turn.”