A new housing development could be built on the Malmesbury outdoor pool site after district councillors decided to sell it to Westlea Housing Association.
Executive members of the district council made the decision in a private session last Thursday night.
North Wiltshire District Council owns the former outdoor pool and a car park site on Old Alexander Road, Malmesbury.
Given its corporate priority for providing low-cost housing, councillors recommended the land be sold to Westlea for 21 houses, five of which would be low-cost.
A report leaked to the Gazette said Westlea has offered the district council a capital sum of £200,000 for the outdoor pool and car park site. In the report, chartered surveyors estimate the market value of the site is around £825,000.
The shortage of supply and approximately 12 per cent house price inflation over the last 18 months, means the properties could sell at about £185 per sq ft freehold.
Westlea's costing for the development comes to around £600,000.
An expected profit of around £225,000 after the homes have been sold will be shared with the council.
Local residents recently pressurised the district council and Westlea into enlarging a play area next to the outdoor swimming pool site.
The housing association has agreed to pay £70,000 to fund the layout and equipment for the play area, which will be leased to the town council.
But having won this victory, residents fear the design and scale of the proposed houses, some more than two storeys high, could be an eyesore.
Philip Wright, from White Lion Park, Malmesbury, who lives near the pool site said: "It was great we won our play park, but the district council seem intent on selling every bit of land it can."
Brian Goswell, chairman of the Newton Grove Recreation Committee, said although district councillors responded to the community's concerns about the play park, the scale of the new development appeared oppressive.
Defending the decision to sell to Westlea, district councillor Judy Rooke, lead member for housing, said the next stage was public consultation.
She said a planning application for the development could be submitted to the district council by the end of this month.
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